Faith-based investment scams on the increase

State securities regulators report in-vestment frauds that take advantage of victims' religious or spiritual beliefs are rising dramatically.

According to a news release from the Better Business Bureau, in some cases, investors are being promised sky-high returns, are sold bogus promissory notes and are victims of the classic Ponzi scheme. (Ponzi schemes continually sol-icit new investors in order to make interest payments to previous investors.)

The North American Securities Ad-ministrators Association estimates that in the last three years, about 90,000 Americans have lost roughly $1.8 billion to frauds using religion as a lure.

The release noted that con artists who use religion to promote scams often:

Predict imminent financial or social crises, in some cases based on their reading of biblical prophecy;

Claim they will reinvest a portion of the profits in a worthy cause; and

Equate faith in their scam to religious faith.

Before making any investment, the Better Business Bureau and state securities regulators urge investors to ask the following questions:

Are the seller and investment licensed and registered in your state? If they are not, they may be operating illegally. Call a state securities regulator to find out. To get the name and number visit www.nasaa.org or look in the white pages of the telephone directory under "government."

Has the seller provided written information that fully explains the investment? Make sure to get a prospectus or offering circular, before buying. The documentation should contain enough clear, accurate information to allow you or your financial adviser to evaluate and verify the investment's particulars.

Are claims made for the investment realistic? Some things really are too good to be true. Use common sense and get a professional, third party opinion when presented with investment opportunities that offer unusually high returns in comparison to other investment options.

Does the investment meet your personal investment goals? Whether you are investing for long-term growth, investment income or other reasons, an investment should match your own investment goals.

Information on obtaining business reliability reports and consumer services can be found at the Better Business Bureau Web site, www.bbb.org.