Protect Yourself From Fraud Resources to Help You Achieve Financial Security

Top 10 Do Your Own Research Tips

1. If It Sounds Too Good to Be True, It Probably Is. When it comes to a potential investment or other financial opportunity, always trust your instincts. If it doesn’t feel right, it probably isn’t!

2. Research Every Detail. Before committing to anything financial, review legal documents, revenue reports, leadership information, etc. If you can’t find anything or a contact can’t provide more information, don’t proceed.

3. Know Your Rights. Be sure to review the Know Your Financial Rights section on page 33 to familiarize and protect yourself from harassment and unfair practices. Every Californian has debt collection, private student loan borrowing, and other consumer rights.

4. Avoid Spending or Investing More Than You Can Afford to Lose. Markets can be volatile, and unexpected costs can occur. Be smart with how much you invest or spend so you don’t get hit with losses you can’t come back from.

5. Don’t Send Money Without Doing Your Own Research. Even if you trust the person telling you about a potential investment, they may not have all the facts. Be sure to confirm the details, especially if you don’t really know them or have never met in person.

6. Nothing Is Guaranteed. There’s no such thing as an investment without risk! If you are being promised little to no risk with guaranteed high returns, it’s probably a scam.

7. Be Suspicious If You’re Told to Keep Quiet. Legitimate financial programs, assets, or investments are generally registered or licensed with a state or federal regulator, such as the DFPI or Securities and Exchange Commission (SEC).

8. Avoid Anything Not Provided in Writing. All agreements, contracts, and terms should be documented and kept for your records. This can help you keep track if changes are made without your knowledge.

9. Get a Second Opinion. If you aren’t sure about a financial matter, consult a third party such as an attorney, certified accountant, or licensed financial advisor.

10. Verify Everything. Always check whether an advisor, professional, financial product, or institution is registered or licensed at dfpi.ca.gov/verify. The Check Before You Invest form on page 67 of this booklet is another great tool you can use to help verify the information of the person or company you are working with.

Don’t forget to share this information with friends, family, and members of your community. It can make all the difference in reducing financial risks.

To get started doing your own research, visit dfpi.ca.gov/consumers.

Think you’ve been the victim of a scam? Visit dfpi.ca.gov/submit-a-complaint or call 1-866-275-2677 to submit a complaint.