How to spot a financial investment scam

5) Promises of Inside Information

The sources of “hot tips” or “insider information” don’t have your best interests in mind. Think about why they’re offering you tips, and how they benefit by telling you about them. If the hot tip is false, you will lose your money if you act on it. If it is really inside information about a public company, it would be illegal to act on it under insider trading laws.