Investment fraud is running rampid on the internet and you need to know the difference between a scam and the real investment. Some of the things you should do before investing online is to investigate the company before you invest. Print a copy of the information from the website. Get the internet url, names and address of any executives for the company, and any other information that may be important. The date and time you saw the offer may also be helpful.

Sometimes people are paid to promote the offer and are not really investors at all. Many websites have testimonials from individuals but you have to make sure these are legitimate reviews and not paid fakes. Find out where the company is incorporated and if they have a current annual report on file. The real companies will be glad to show you any and all information they have to prove they are who they say they are and that they are indeed legitimate.

If it sounds too good to be true, it usually is, but there are a few exceptions to the rule and that is why it is very important to do your homework and research the company well. If you are investing in a company in the U. S., check with the SEC (Securities Exchange Commission) and the BBB (Better Business Bureau) to see if they have any complaints against them.

Get written information on their financial status, prospectus, annual report, etc. and compare this information with that you have read on their website. You also need to discuss any investment with your attorney or financial advisor before you invest.

There have been many individuals scammed online with one or more investment frauds and it is hard for the authorities to keep up with them all. Many of them are here today and gone tomorrow (after they get your money). If you have investigated an investment company and found it to be a scam, don't be afraid to share it with others in the forums and other places where it has been discussed or promoted. You can also report it to the SEC and other authorities. Just be careful and have a pleasant experience online instead of a nightmare.