It’s a hard, cold fact: fraudsters lie. That’s how they attempt to make money. They lie when they promise you “guaranteed” high returns with little or no risk. And they lie when they forget to mention that the company or product they’re touting doesn’t exist.

Some fraudsters tell straightforward lies, fabricating facts or making bogus claims. That’s why we encourage investors to do their own independent research and to remember that wonderful, timeless adage: “If it sounds too good to be true, it probably is.” Other fraudsters salt their stories with grains of truth to give their schemes an air of legitimacy. For many years, the SEC and securities regulators around the globe have been encouraging investors to investigate before they invest — to ask tough questions about their investments and the people who sell them. Taking their cue from us, some fraudsters now pretend to do the same.

One ruse fraudsters use involves assurances that an investment has been registered with the appropriate agency. The fraudsters will purport to give you the agency’s telephone number and invite you to verify for yourself the “authenticity” of their claims. But even if the agency does exist, the contact information almost certainly will be false. Instead of speaking with an actual government official, you’ll reach the fraudsters or their colleagues — who will give the company, the promoter, or the transaction high marks.

Another trick involves the misuse of a regulator’s seal. The fraudsters copy the official seal or logo from the regulator’s website — or create a bogus seal for a fictitious entity — and then use that seal on documents or web pages to make the deal look legitimate. You should be aware that the SEC — like other state and federal regulators in the U.S. and around the world — does not allow private entities to use its seal. Moreover, the SEC does not “approve” or “endorse” any particular securities, issuers, products, services, professional credentials, firms, or individuals.

Here’s how you can protect yourself against these and other deceptive tactics:

Deal Only With Real  Regulators — It’s not hard to figure out who the real regulators are and how you can contact them.

Be Skeptical of Government “Approval” — The SEC does not evaluate the merits of any securities offering, nor do we determine whether a particular security is a “good” investment. Instead, the SEC’s staff reviews registration statements for securities offerings and declares those statements “effective” if the companies appear to have satisfied our disclosure rules.

Look Past Fancy Seals and Impressive Letterheads — Most people who use computers know how easy it can be to copy and paste images. As a result, today’s technology allows fraudsters to create impressive, legitimate-looking websites and stationery at little to no cost. Don’t be taken in by a glossy brochure, a glitzy website, or the presence of a regulator’s official seal on a web page or document.

Check Out the Broker and the Firm — Always verify whether any broker offering to buy or sell securities is properly licensed to do business in your state, province, or country.

Be Wary of “Advance Fee” or “Recovery Room” Schemes — An increasing number of investment-related frauds target investors worldwide who purchase “microcap” stocks, the low-priced and thinly traded stocks issued by the smallest of U.S. companies. If the stock price falls or the company goes out of business, the fraudsters swoop in, falsely claiming that they can help investors recover their losses — for a substantial fee disguised as some type of tax, deposit, or refundable insurance bond. As soon as an unwary investor pays the “advance fees,” the fraudsters disappear — leaving the investor with even higher losses.

If you want to invest wisely and steer clear of frauds, you must get the facts. Never, ever, make an investment based solely on a promoter’s promises or what you see on the Internet — especially if the investment involves a small, thinly-traded company that isn’t well known. And don’t even think about investing on your own in small companies that don’t file regular reports with the SEC, unless you are willing to investigate each company thoroughly and to check the truth of every statement about the company.

We frequently hear from frustrated citizens who’ve been inundated with “junk faxes” — unsolicited advertisements that clog up the memory, tie up the line, and eat up the paper on your home or office fax machine. Some of these missives tout diet fads, office products, or vacation deals. Others purport to be “unbiased” investment newsletters that extol the virtues — and promote the stock — of some “hot” new company. Believe it or not, the U.S Securities and Exchange Commission Office of Investor Education and Advocacy gets unwelcome junk faxes, too.

Here’s what you should know about investment-related junk faxes, including the steps you can take to try and stop them:

• Be skeptical and wary of unsolicited investment advice — Paid promoters are generally behind the investment-related “junk” faxes you may receive. Some companies — especially smaller, “microcap” companies — pay people to write newsletters to “tout” or recommend their stocks. While this isn’t illegal, the federal securities laws require the newsletters to disclose who paid them, the amount, and the type of payment. Compliance with this disclosure requirement, however, does not by itself indicate that the information disclosed is truthful. The Commission has charged individuals for disclosing false and misleading information concerning the origin of the fax, who paid for it, or the type of payment.
• Don’t believe any claim of “Govt Endorsement” — The Goverment of USA does not endorse or approve any investment product or service. Ever. If an investment-related junk fax suggests otherwise — either by invoking the SEC’s name, providing the URL for our website, or using our seal — then you should exercise extreme caution.
• The SEC does not have a “do not fax” list — Junk faxes often contain a “disclaimer” or disclosure at the bottom of the page. Unfortunately, some junk faxes refer to the SEC just before the fax removal instructions. This has misled many into believing that the SEC is somehow involved or can assist them in getting their fax numbers removed from the distribution list. But that’s not the case.

Every day, millions of computer users share files online. Whether it is music, games, or software, file-sharing can give people access to a wealth of information. To share files through a P2P network, you download special software that connects your computer to other computers running the same software. Millions of users could be connected to each other through this software at one time. The software often is free.

Sounds promising, right? Maybe, but make sure that you consider the trade-offs. NigerianSpam.com cautions that file-sharing can have a number of risks. For example, when you are connected to file-sharing programs, you may unknowingly allow others to copy private files – even giving access to entire folders and subfolders – you never intended to share. You may download material that is protected by copyright laws and find yourself mired in legal issues. You may download a virus or facilitate a security breach. Or you may unwittingly download pornography labeled as something else.

To secure the personal information stored on your computer, NigerianSpam.com suggests that you:

• Install file-sharing software carefully, so that you know what’s being shared. When you load a file-sharing application onto your computer, any changes you make to the P2P software’s default settings during installation could cause serious problems. For example, if you change the defaults when you set up the “shared” or “save” folder, you may let other P2P users into any of your folders – and all its subfolders. You could inadvertently share information on your hard drive – like your tax returns, email messages, medical records, photos, or other personal documents – along with the files you want to share. And almost all P2P file-sharing applications will, by default, share the downloads in your “save” or “download” folder – unless you set it not to.
• Use security software and keep it and your operating system up-to-date. Some file-sharing programs may install malware that monitors a user’s computer use and then sends that data to third parties. Files you download may also hide malware, viruses, or other unwanted content. And when you install a P2P file-sharing application, you might be required to install “adware” that monitors your browsing habits and serves you advertising.
• Malware and adware can be difficult to detect and remove. Before you use any file-sharing program, get a security program that includes anti-virus and anti-spyware protection from a vendor you know and trust and make sure that your operating system is up to date. Set your security software and operating system to be updated regularly. Make sure your security software and firewall are running whenever your computer is connected to the Internet. Delete any software the security program detects that you don’t want on your computer. And before you open or play any downloaded files, scan them with your security software to detect malware or viruses.
• Close your connection properly. In some instances, closing the file-sharing program window does not actually close your connection to the network. That allows file-sharing to continue and could increase your security risk. If you have a high-speed or “broadband” connection to the Internet, you stay connected to the Internet unless you turn off the computer or disconnect your Internet service. These “always on” connections may allow others to copy your shared files at any time. To be sure your file-sharing program is closed, take the time to “exit” the program, rather than just clicking “X” or “closing” it. What’s more, some file-sharing programs automatically open every time you turn on your computer. As a preventive measure, you may want to adjust the file-sharing program’s controls to prevent the file-sharing program from automatically opening.
• Create separate user accounts. If more than one person uses your computer, consider setting up separate user accounts, in addition to the administrator’s account, and give those user accounts only limited rights. Since only a user with administrator rights can install software, this can help protect against software you don’t want on your computer. It also can keep users from accessing other users’ folders and subfolders, since users with limited rights generally don’t have access to each other’s information. Also use a password to protect your firewall and security software so no one else can disable them or grant themselves rights that you don’t want them to have on your machine.
• Back up sensitive documents. Back up files that you’d want to keep if your computer crashes. Store them on CDs, DVDs, or detachable drives that you keep in a safe place.
• Talk with your family about file-sharing. If you’re a parent, ask your children whether they’ve downloaded file-sharing software, and if they’ve exchanged games, videos, music, or other material. Talk to your kids about the security and other risks involved with file-sharing and how to install the software correctly, if they’re going to use P2P file-sharing at all. If you’re a teen or tween interested in file-sharing, talk with your parents before downloading software or exchanging files.