These days, almost everyone with a credit card makes some online purchases. Now and then, it’s quite common to get scammed by online retailers who promise the moon and deliver…nothing at all. If you want to know, is a business legitimate, it’s better to find out before you spend a cent. For some trusting consumers or investors, putting money into a purchase or investment and getting scammed can be quite traumatic. After all, no one likes to be taken advantage of. As well, it can be difficult to get justice when fly-by-night companies take the money and run…

The best way to avoid being scammed is by practicing due diligence. For centuries, smart investors or buyers have researched their new opportunity or company very carefully before making a decision. Whether you’re ordering new tennis racket or investing for your retirement, you must take pains to find out everything about a company and its employees. Of course, some websites and stores already have a great reputation – they’ve built their brand over time. These can be safe options for investment or shopping purposes.

When you’re dealing with an unknown quantity, make sure you investigate the company through Google searches, trade associations, and the like. Never cut corners. If anyone’s complained about poor service, shoddy merchandise, or poor return on their investment capital, you need to know about it. The BBB can help – so can references from customers or investors. Don’t be afraid to ask the company for references. If a company balks at answering questions, it’s a red flag to take care and beware.