The recent economic turmoil has witnessed the destruction of many businesses and jobs. At the same time, new opportunities are cropping up everywhere. Many who have been recently displaced have decided to try their hand at the entrepreneurial adventure--striking out on their own with the optimism of self-directed destiny. But the relative inexperience of many of those entering the entrepreneurial fray for the first time makes them optimal targets for those looking to profit from their confusion.

Having heard first-hand accounts from the victims of many of these unscrupulous individuals, I thought I might send out a friendly reminder regarding how to protect yourself.

Wikipedia: "A confidence trick or confidence game (also known as a bunko, con, flim flam, gaffle, grift, hustle, scam, scheme, or swindle) is an attempt to defraud a person or group by gaining their confidence."

Every day, entrepreneurs, investors, engineers and well-meaning individuals are suckered into signing agreements, engaging partners or paying good money only to find themselves the victims of one confidence game or another.

We wouldn't hesitate to check the authenticity and ask for a License # of a firm or individual doing work on our house. Yet, if someone posing as a "CEO who recently sold their last company" or representative of "a large investment group" approaches us, we are far less likely to question their credentials or perform the due-diligence necessary to protect ourselves. Why? One reason is that these individuals frequently appear as the missing link--a shortcut to the expertise, or funding or connections we need. Another reason is that we question "who would be brazen enough to take my $3,500 to prepare paperwork that would virtually insure my funding?" Or, who would pass themselves off as "someone who sold their company for $17 million?" Sadly, the answer is: quite a few.

Before entering into agreements with individuals who want to take your money or partner with you or become your next C-level executive, do some homework. And dig. Dig deep. Ask around. Talk to committee members in respected organizations like Tech Coast Venture Network or Tech Coast Angels to get character references. Google. Trust your gut. If it's too good to be true...well, you know the rest. Protect yourself.

Have an example or story to share about your experiences? Leave a comment here!