Investing your hard-earned money is a smart way to secure your financial future. However, the world of investments can sometimes be a breeding ground for scams. The promise of quick riches or doubling your money within a few months can be tempting, but it’s essential to stay vigilant. In this blog post, we’ll provide you with a simple 3-step checklist to help you distinguish between legitimate investment opportunities and potential scams.

1. Verify Their Physical Address

Before you invest in any scheme, whether it claims to be a golden opportunity or a surefire investment, take a good look at the company offering it. Here’s what you should do:

  • Check for a Website: Ensure the investment is presented through a professional website. Scams often use social media, email, or other unprofessional platforms.
  • Physical Address: Examine the website for a physical street address. If you can’t find one, it’s a red flag.

Now, for the most important part:

  • Verify the Address: Use Google Maps or Google Earth to check if the address is legitimate. Be cautious if it’s a P.O. Box, a USPS store, or a virtual mailbox store. Some scams make it seem like they have a real office, but it’s just a virtual one.
  • Search the Secretary of State Records: Every corporation is required to file with the Secretary of State. Verify if the company you’re dealing with is a legitimate corporation. Many scams don’t have any legal documentation.

This first step is about confirming the basic authenticity of the investment opportunity. If it fails this test, you should be extremely cautious moving forward.

2. Start Small and Ask for a Withdrawal

Even if the investment opportunity has passed the first step, it’s crucial not to jump in headfirst. Start with a small, manageable amount of money that you can afford to lose.

Why is this so important?

  • Observe Their Behavior: In many cases, scams will start with a small request for money. Once you’ve invested, they will send you statements claiming massive returns.
  • Request a Withdrawal: Here’s where the rubber meets the road. Ask to withdraw a portion of your earnings, a bit less than what you initially invested.


If they come up with reasons not to let you withdraw, such as mentioning taxes or fees, this is a clear indication that it’s a scam. In most legitimate investments, you can withdraw your money without facing these types of hurdles.

3. Ask for SEC Registration and Principal Names

The final step is about asking for documentation to prove the investment’s legitimacy:

  • SEC Registration: Most types of investments are required to be registered securities with the Securities and Exchange Commission (SEC). Request documentation proving their registration as a security.
  • Principal Names: Ask for the names of the people involved in the investment company, including the owner or manager. Then, look these individuals up on professional networking sites like LinkedIn. Make sure they’re legitimate professionals.

By following these three simple steps, you can protect yourself from most investment scams. It’s essential to remember that scams are not exclusive to naive individuals; even the most sophisticated investors can fall victim to well-executed schemes.

If you’ve been a victim of a fraud, you’re not alone. Many people have lost substantial sums of money. You can prevent becoming one of these unfortunate cases by following these steps. Don’t let your hard-earned money go to waste. Stay vigilant and protect your investments.

Looking for answers?

Talk to an expert licensed private investigator.

Our team can help answer questions about your case, uncover the truth, and build a strong case. Schedule a consultation today.