A few investing rules that will help you avoid financial frauds

"Those who cannot remember the past are condemned to repeat it."  
American philosopher George Santayana

To save you from financial ruin, here are a few investing rules that will help you avoid financial frauds:

1.  Do not invest in arcane schemes with promoters who will not explain the investments clearly.  Make sure you understand exactly where the investment costs and returns will come from and at what risk.

2.  Beware the "quick buck" or getting "something for nothing."  Promises of "too good to be true" returns are just that.

3.  Always do reference checking before investing.  Charlatans spend much time, money and effort in trying to appear legitimate.  Beware.  Do not be fooled.

Unfortunately, just following these three rules doesn't guarantee you will never be fleeced.  So do not 'put all your eggs in one basket.'  That way, even if you are duped, not everything is lost.  Diversify your investments.