WASHINGTON - The North American Securities Administrators Association has identified the 10 most common ploys being used to cheat investors out of hundreds of millions of dollars -- and No. 3 is unregistered investment products such as pay telephone and ATM leasing contracts which promise "limited or no risk" and high returns.

"Investors should keep their guard up anytime anyone offers an investment opportunity. It pays to remember that if an investment sounds too good to be true, it usually is," said Franklin L. Widmann, NASAA's president and chief of the New Jersey Bureau of Securities.

The ranking of NASAA's Top 10 threats to investors for 2005 is based on the order of prevalence and seriousness as identified by an annual survey of state securities regulators, according to a news release.

In addition to unregistered investment products, the threats include Ponzi schemes, unlicensed individuals selling securities, promissory notes, senior investment fraud, high-yield investment schemes, Internet fraud, affinity fraud, variable annuity sales practices and oil and gas scams.

NASAA cited three investment opportunities -- penny stocks, private placements and investment seminars -- for "dishonorable mention."  

Before making any investment, Widmann urged investors to ask the following questions: Are the seller and investment licensed and registered in your state? Has the seller given you written information that fully explains the investment? Are claims made for the investment realistic? Does the investment meet your personal investment goals?

Widmann urged investors to contact their state or provincial securities regulator with any questions about an investment product, broker or adviser, before making an investment. "One phone call can save a lot of money and heartache," he said.

NASAA offers  information about each of the Top 10 scams, as well as tips on how to detect con artists and avoid becoming a victim, in the NASAA Fraud Center at http://www.nasaa.org.