Try to speak to previous owners or investors of the company. Discuss all investment plans or ideas with an accountant or advisor you trust. Try to find published information of the company in which you'd like to invest including the registration of securities. Check with your state's securities agency to see if the promoters are licensed to sell securities in your state. Check with the law enforcement agencies and the Better Business Bureau in the area in which these promoters are located.
Scam artists lie.
Their success depends on having an airtight answer for everything. They alter the costs and value of numerous worthless investments. Investing is always risky. However, you can make it a little less risky if you demand written proof of profit projections and do not rely solely on verbal projections. If you should run into a problem with your salesperson or account, promptly speak to their manager or the firm's compliance officer.