Investors must exercise caution

The alleged stock market fraud revealed in New York last week is a timely reminder of "buyers beware" for investors here

The alleged stock market fraud revealed in New York last week is a timely reminder of "buyers beware" for investors here. More than 100 arrests followed the revelation that the Mafia was using the Internet to manipulate share prices.

Before you give in to a broker's sales pitch, take a few simple steps to protect yourself.

Never write a cheque to an individual. Always make it out to the life company or stockbroker. Check that the company is registered with either the Central Bank, the Irish Stock Exchange, the Irish Brokers' Association or the Irish Insurance Federation.

Be wary of "guaranteed returns" or telephone calls from brokers you've never met before or those calling from abroad.