Are you an adult with savings? Are you a homeowner or property owner? Be alert to scammers looking to steal your cash. Adults who are older are at risk of scams involving investments because they usually have savings and other assets. The consequences of scams involving investments can last a long time and be destructive. Private placement program scam would like seniors and their family members to be aware of common scams and the best way to prevent them. WHAT IS INVESTMENT FAUD?The term "investment fraud" refers to the way that people try to trick you into investing your money. They could ask to make you invest in stocks, bonds, notes, commodities, currency, or even real estate. Scammers could lie to you, or provide false information about a real investment. They can also make fake investment opportunities. Fraudsters who commit investment fraud could claim they are financial advisors, telemarketers, or even telemarketers. They appear intelligent, friendly and charming. They might tell you that an investment opportunity is in the near future. They'll attempt to earn your trust so that you'll quickly give them money without asking too many questions. What are some common investment scams? Affinity Fraud Scammers attempt to fool members of a group who have formed based on a common characteristic like ethnicity, age, or religion. Scammers pretend to be members of the group in order to win the trust of the group leader and its members. They want other people to follow their lead and invest in the event that the group leader invests. High Yield Investment Programs Scammers claim you'll make huge returns on your investment when you invest in them. They say you're guaranteed to make money off the investment. These investments often aren't true or are selling stocks with almost zero worth. Pyramid Schemes Scammers will tell you that a small investment can bring in a substantial payout or a profit. You need to find other investors to invest with you. You will only get part of the "profit" you earn if other investors invest in it. The fraudster will either be unable to find investors or take all the money and then disappear. Ponzi Schemes A fraudster usually is a portfolio manager who claims that they will invest your money to earn you large pay outs. The money you earn is actually just money received by other investors. The scam is ruined when the scammers can't find any new investors to pay them. Pump and dump Scammers purchase stocks at a bargain and lie to potential purchasers regarding the quality of the stocks to raise their prices. It is possible that you think they're a good investment, so you decide to purchase them at a price that is higher. The scammer sells the shares at the price that is higher, the stock price drops and you're left with a stock that is worthless. Plans for the Recovery Room Scammers claim they can assist you recover funds you've lost through different investment strategies. However, they require that you first pay them. After you have paid them, they won't take any action. Unsuitable Financial Products An advisor might try to sell you something that will make you a lot of money, however, it isn't a good idea for you. Financial products like annuities can take some time to earn the money you promised. You might also have to pay a large fee to withdraw your money. Additionally, certain financial advisors might charge customers for services you did not receive or for products that you didn't ask for.
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May 2022
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