Scam Oil Brokers are trying to take advantage of people who are willing to invest in oil. They have been known to set up fake websites to represent imaginary companies, including government agencies, law firms, and tank terminals. To lure people into making a transaction with them, these fake firms will send them fake documents. Once they convince you to buy oil, the scammers will demand a large advance payment before they actually deliver it. To avoid falling for these scams, do your homework and make sure you know your broker’s reputation before investing. The SEC and NASAA offer alerts about alleged fraud in the oil and gas industry. Be sure to check your broker’s references before making a decision. You should also consult other brokers before deciding to invest your money in an oil and gas company. You should also research the oil and natural gas company through the state’s agency. The SEC has valuable information on public companies and their operations, including their financial statements, mutual fund disclosures, and more. To avoid becoming a victim of oil and gas investment scams, it’s important to do your due diligence. Checking the SEC and NASAA alerts on oil and gas investment companies will help you avoid scams. You should also consult other brokers and check with the state oil and gas regulatory agencies. Always check the claims made by your broker with information from the SEC and the state oil and gas agency. Remember that some scams will over-hype the benefits of an oil and natural-gas investment and may not be as legitimate as they claim.
