Online Investment Scams: Introduction

To: investor@aol.com Subject: This is your lucky day!!! I don't usually send out stuff like this, but what I have to tell you is just too good. For the last 6 months I've been developing the ULTIMATE TRADING PROGRAM. I've figured out exactly how to pick the next Microsoft. In fact, over the last year I've had a 3000% return on my investment!!! In my investing program there is absolutely NO RISK. In fact, it's such a SURE THING that we'll guarantee you cannot lose your investment. Thing is, if you want a part of the action, you'll have to send me $499.95 today. There are just too many other investors who want to get in on this... Ever find a scam like this in your e-mail? We sure get enough of them in the Investopedia Inbox. The Internet is a great tool for investors, allowing us to research investments and trade securities with unprecedented ease. Unfortunately, the lack of rules on the 'Net also makes it a perfect place for fraud to flourish. In this tutorial, we look at the ins and outs of Internet investment fraud. We examine different scams, see how they are carried out, and discuss how to avoid them.

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