How can you protect yourself?

Research your investment opportunities - Take advantage of resources such as the U.S. Securities and Exchange Commission's EDGAR database and your state's securities commission (found through the North American Securities Administrators Association) to investigate companies.

Be wary of online information - Anyone can publish information on the internet, so try to verify any online research through other methods before investing any money. Also be cautious of "hot" investment opportunities advertised online on in email.

Check privacy policies - Before providing personal or financial information, check the web site's privacy policy. Make sure you understand how your information will be stored and used (see Protecting Your Privacy for more information).

Make sure that your transactions are encrypted - When information is sent over the internet, attackers may be able to intercept it. Encryption prevents the attackers from being able to view the information.

Verify that the web site is legitimate - Attackers may redirect you to a malicious web site that looks identical to a legitimate one. They then convince you to submit your personal and financial information, which they use for their own gain. Check the web site's certificate to make sure it is legitimate (see Understanding Web Site Certificates for more information).

Monitor your investments - Regularly check your accounts for any unusual activity. Report unauthorized transactions immediately.

Use and maintain anti-virus software - Anti-virus software recognizes and protects your computer against most known viruses. However, because attackers are continually writing new viruses, it is important to keep your virus definitions current (see Understanding Anti-Virus Software for more information).

Use anti-spyware tools - Spyware is a common source of viruses, and attackers may use it to access information on your computer. You can minimize the number of infections by using a legitimate program that identifies and removes spyware (see Recognizing and Avoiding Spyware for more information).

Keep software up to date - Install software patches so that attackers can't take advantage of known problems or vulnerabilities (see Understanding Patches for more information). Enable automatic updates if the option is available.

Evaluate your security settings - By adjusting the security settings in your browser, you may limit your risk of certain attacks (see Evaluating Your Web Browser's Security Settings for more information).

The following sites offer additional information and guidance: U.S. Securities and Exchange Commission - http://www.sec.gov/investor/pubs/cyberfraud.htm

National Consumers League - http://www.fraud.org/tips/internet/investment.htm

Author: Mindi McDowell
Produced 2006 by US-CERT, a government organization.