It is better to be safe than sorry. Also, if you become suspicious, get out of the investment. Stop payment on your check or demand your money back. If, after careful consideration, you decide to invest, keep your initial investment small. Pressure to put all your savings into a single investment is a sign of a scam.
Most reputable stockbrokers believe that diversification is a wise safeguard.
Also, never invest more than you can afford to lose. 1999 Office of Banks and Real Estate - State of Illinois. Permission to reproduce for non-commercial purposes with this copyright notice is granted.