MALVEAUX: The roller coaster ride of the stock market has many people in the stock market worried about the bottom line, and there are scammers out there ready to take full advantage of your financial vulnerability. Our Alison Kosik is here with today's top tips, avoiding investment scams. Alison, what should we look out for? How do we know we will be scammed?</s>ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Suzanne, the Better Business Bureau is actually warning consumers that you'll usually find more investment scams during tough economic times. So if you've been getting these money-making pitches and they sound too good to be true, guess what? They probably are. The bureau says, if you are contacted unexpectedly, let's say getting phone calls or letters from investors urging you to respond, especially asking you for your personal information, you should be really careful. Also, "Consumer Reports" reminds you to protect your online investment. Check your computer security, be careful what you download, what you encrypt with your wireless connection And don't use a public computer for any online investing. Check on your accounts often and keep an eye out for any inconsistencies -- Suzanne.</s>MALVEAUX: You have a couple other red flags as well consumers need to look out for, yes?</s>KOSIK: Yes. One of the most common consumer complaints, Suzanne, that the bureau are companies asking for big upfront investments and fees in return for a big payout. And if you are promised high returns for a low risk, that is yet another red flag. The bureau says if you attend a seminar offering an investment plan for large returns with little or no risk, even with a money back guarantee, you really want to think twice before you hand over your cash. Also, if the investment company uses high-pressure sales tactics, trying to get you to sign up immediately or pushing overseas investments or claiming you can avoid taxes by investing overseas, you really should be suspicious -- Suzanne.</s>MALVEAUX: And, Alison, the question, of course, how do we know if the financial adviser you're using is even legit. We're going to ask you that after the break.
How to Avoid Investment Scams