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Understand loopholes scammers can use.

Before you invest your money in anything, your first stop should be the SEC’s website. You should always find out whether any regulatory filings exist on the investment or person selling the investments.

If you’re not able to turn up any filings, your defenses should go up. Scamsters know that loopholes exist in SEC rules — originally designed to help small companies avoid bureaucratic red tape — that allow them to avoid filing potentially troublesome documents.

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