Investment Frauds and Scams
Investment Frauds and Scams Investing is rapidly growing as a way of dealing with retirement expenses, as well as a supplementary second source of income. ... The thing to remember about any type of investment, however, is the risk involved. ... This means, the chance of losing your initial investment. ... Do your research, meaning look into the types of investments you want to try, determine the costs and benefits of each one, to determine what investment is best for you. The factors involved with each investment are going to differ from each perspective. In any investment you will want to know what is involved in the investment, such as costs, interest rates, what type of risk is involved, how high is the return, is there a return, what kind of security do you have, is the broker liable for your loss, is the broker reliable. These are only some of the questions you might ask when making an initial investment, but they are not the only questions you might want to know. An important factor in deciding to invest is of course if the investment is legitimate. ... There is a difference between a bad investment, and a fraudulent investment, and you need to know the difference between the two. ... A bad investment might be made because of certain circumstances that are not avoidable, such as market changes. ... Fraudulent investments, or scams, on the other hand, are an unethical and illegal investment practice. ... There are popular forms that most often turn out to be hoaxes or scams, and these you need to watch out for. ... Another type of fraudulent investment is that of unscrupulous stockbrokers. ... Brokers have the duty to protect the investor from frauds or poor investments. ... ” Affinity group fraud is another type of fraudulent investment practice. ... These notes are promised to the investor to be a short-term investment, with low risk and high returns. ... The Internet is an increasingly popular vehicle of investment, since the technology age is starting up. With this increase in technology, and Internet investment, brings an increase of frauds and scams. ... The Internet Fraud Complaint Center reported scams cost nearly 10,000 Americans $18 million last year alone. ... With average scams costing victims $1000, these are only the reported numbers. ... com is one of the most notorious scams in 2000 as the Securities and Exchange Commission (SEC) shut down the fake online stock market last year. ... Prime-bank schemes are another form of investment fraud.