教你识别投资陷阱

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In December, it was Bernie Madoff and his 50-billion-dollar Ponzi scheme. Now it's Texas billionaire financier Allen Stanford accused of swindling investors of 9 billion dollars. Here's how you can avoid scammers in the investment business: First, recognize they exist everywhere. Regulators banned more than 350 brokers from the business just last year. And when it comes to keeping your money safe, you are your own best defence. Steve Weisman is the author of The Truth about Avoiding Scams:

"You've got to do your homework. You've got to understand the kinds of things that can go on. You've got to understand what you're investing in."

Here are the red flags to watch out for: Be suspicious of any claims on performance returns. Anything that promises no risk or looks incredibly complicated is to be avoided. Watch out for investments that are not independently audited. Your money should be held separately from the brokerage accounts, an independent custodian should be appointed to manage it. Beware any advisor who won't let you access your account online or has difficulty taking money out of your account.

If you do get scammed, there are a lot of places to file a complaint. The Securities and Exchange Commission is a place to start at SEC.gov. Contact your state Attorney General's office and FINRA.org, the regulatory agency for financial advisors. A good first step and a preemptive move: check out a money manager you are thinking of hiring on FINRA. There you will find whether your advisor has gotten into trouble in the past.

For cnnMoney.com, I'm Gerri Willis.

Glossary

1.         swindle of                              骗走某人的             

2.         scammer                               骗子 施诡计者         

3.         investment business                    投资业务                    

4.         red flag                                n.红旗, 危险信号, [喻]惹人生气的事物          

5.         performance return                     n.业绩回报                   

6.         brokerage account                      经纪帐户                  

7.         custodian                               n. 管理人 监护人         

8.         regulatory agency                      管理机构                  

9.         preemptive                            adj. 抢先的, 有先买权的, 有强制收购权的,           

10.       money manager                        [经济]短期资本经营者