Recently, I have received about 10 times the normal phone calls from mortgage companies, financial advisors, and even the top managed asset companies. I wondered why. Needless to say, since I recently refinanced, I received hundreds of mailers, but that is just plain good old marketing strategy. And, of course, they were immediately thrown out. But why the phone calls? Maybe, as the Better Business Bureau says, these callers figure that I am more attentive than most people to lower mortgage rates and refinancing.

There are also constant calls from financial advisors and stockbrokers. I am not saying that any of these requests are shady, I don’t know. But I do know that thousands of Americans invest in business deals. While many find financial success from legitimate investments, some lose their life savings.

There are dozens of different investment frauds. Clever crooks promote investments in oil, silver, gold and precious gems by promising attractive (too attractive) dividend income and stock appreciation.

Some of the original investors in these schemes are often lulled (read: duped) into a false sense of security by the receipt of dividends. However, these "dividends" are not paid from the profits of the operation, but from capital invested by the most recent victims.

Before you invest, you must investigate. Be suspicious of offers that promise huge profits, guarantee low risks, and want you to ACT NOW. We all know that any investment with a high return also carries a high risk.

Other investment frauds come in the form of insurance transactions. In the State of California, licensed stockbrokers are legally obligated to sell investments that are appropriate to their client’s needs. Insurance brokers are not; which is the reason most investments can be sold as insurance products, thus avoiding the more restrictive standards established for the sales of securities. This does not make them suspect, it just should make you more careful.

Other problems related to life insurance and annuities may occur when the consumer is encouraged to do any of the following without the payment of extra premiums:

• apply for a loan on an old policy to support a new policy
• use dividends from an existing policy to pay for a new policy
• replace an old policy with new ones that have higher interest rates
• consolidate old policies to make lower premiums.

When additional life insurance is being offered, consumers should always question why more life insurance is needed. And obtain a written explanation of the suitability and the effect on the existing policy. A replacement disclosure form should be obtained. Make sure it is not a blank form. You should always question your agent if interest is billed on life insurance loans, ensuring that cumulative interest is not taking money away from your payout. Never pay premiums in cash; always a check to the insurance company, not an individual.