Securities Division, 3rd Floor

Arizona Corporation Commission

1300 W. Washington St.

Phoenix, AZ 85007


Main: (602) 542-4242


Toll-Free Number in Arizona:
1-(866) 837-4399

Ask and Check
Before You Invest!

Grow Your Money Wisely!


TEL:  1-866-837-4399 (toll free in AZ)

scam circle sign


Fraud Prevention Center

Tips on How to Avoid Investment Fraud

caution_signThe complex world of securities offers many investment opportunities. Investors are showered with calls, mail-order offers, and solicitations via the Internet. Some of these opportunities may be beneficial, others may not be. Make sure the entity and person who makes these offers is legitimate. No matter how you choose to invest your money, there will always be a degree of risk. The higher the return potential, the higher the risk of the investment. An informed investor is the best protection against securities fraud.  Scam artists prey on people who don't ask many questions and take the time to understand the "mechanics" of a particular investment.  Know how to recognize fraud and reduce the possibility of falling victim to an investment scam.

Investments that are marketed as "proven" or "guaranteed," are often the product of a scammer’s imagination. Avoid them at all costs. Every year investors lose millions of dollars in financial fraud. There are a number of very persuasive and persistent marketers who are engaged in promoting schemes or scams that promise quick profits. Telephone offers account for three quarters of all investment fraud. These scammers are smooth talkers and are willing to gamble with almost any kind of investment. Scammers master these techniques perfectly, have them well rehearsed, are very convincing, and it may be difficult to resist them.

The best protection against these fraudsters is to be an informed investor who investigates before handing them money. And remember, if it sounds too good to be true, it’s probably not a legitimate business. Scammers take advantage of people who don’t ask many questions and take the time to understand the "mechanics" of a particular investment. Know how to recognize fraud and reduce the possibility of being a victim of an investment scam.

First, make sure you get proper written information such as a prospectus or offering materials before you buy.  The documentation should contain enough clear and accurate information to allow you or your adviser to evaluate and verify the particulars of the investment.   Most importantly, ask and check on the investment promoter's background--make sure that person is licensed to offer and sell investments in Arizona and does not have a disciplinary history with regulators.

But con artists are skilled liars and can make a fraudulent investment look and sound legitimate.  How can you tell the difference?  Take note of the following fraud prevention tips on how to ask the right questions and verify the answers before you invest:

Protect Yourself Against Investment Fraud

16 Questions That Can Turn Off a Swindle

How to Ask and Check Before You Invest

Common Investment Scams in Arizona

    Do you have a burning desire to invest? Before you hand over your money, read more about wise investing and fraud prevention in the section, Investor Resources

    The information provided on this website is not comprehensive, is not offered as legal or investment advice, and is not a substitute for competent legal or financial counsel. The Securities Division provides this information to give you an overview of the topics discussed. You should not rely on the accuracy of this information, but should carefully review all applicable statutes and regulations with the assistance of legal counsel.

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    Arizona Corporation Commission

    1200 W. Washington Street

    Phoenix, AZ 85007


    Corporations Division

    1300 W. Washington Street

    Phoenix, AZ 85007


    Tucson Office (Walk-ins only)

    400 W. Congress Street

    Tucson, AZ 85701