Scams are proliferating like mushrooms after a rainstorm (the Information Superhighway is a breeding ground!) And here's something to keep in mind: The risk is extra high during the holiday season when our defenses are down and our goodwill spirit is up.

Here are three fail-safe ways to avoid any and all investment scams:

1. Don't invest your money with anyone farther away than a short drive from your home. We don't believe in mailing or, heaven forbid, Federal Express-ing investment money to a stranger. If you are interested in the pitch, make an appointment to go to the caller's office to discuss it in person. Anyone who won't allow you to visit them is probably a scammer.


2. If you haven't entered a contest, you can't possibly have won something. (It's tough enough to win a content you actually enter!) Throw any notifications of "wonderful" prizes in the circular file. The worst "contest" scam we've ever heard of came from a caller to our radio show that spent $35,000 trying to win $25,000 ... strange, but true.


3. Don't let them fleece you twice. If you fall for a scam, often the people who scammed you will call back pretending to be with a consumer fraud group of the Postal Inspection Office claiming they can recoup your losses ... for a small fee, of course. Keep your checkbook closed and hang up the phone.

Consumer fraud has become big business. We're here to alert you to scams and help protect you from becoming a victim. Learn more about investments you should avoid here.