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| FRAUD ALERT |
INVESTMENT FRAUD
Investment fraud is geared towards the elderly, but everybody should follow the tips below.
One of the biggest investment frauds that has continued for many years is the Ponzi Scheme. All
older investors are paid dividends from new investors. This can go on for a long time and everything
seems so great.
The person in charge of this phony investment company does nothing to actually invest everyone's
money except to live off the money as it comes in with his salesmanship of selling investments to
people that trust him without digging deeper to check the company out.
Finally, when he finds out he has too many investors to pay dividends to because he has not
brought in enough new invester's, the Ponzi Scheme begins to fall apart. The older investors start
complaining that they are not receiving dividend payments anymore and then to their surprise, their
original investment money has disappeared also.
Due diligence is mandatory to anyone contemplating investing their money.
Investment fraud is geared towards the elderly, but everybody should follow the tips below.
- If the "opportunity" appears too good to be true, it probably is.
- Beware of promises to make fast profits.
- Do not invest in anything unless you understand the deal.
- Don't assume a company is legitimate based on "appearance" of the website.
- Be leery when responding to investment offers received through unsolicited email.
- Be wary of investments that offer high returns at little or no risk.
- Independently verify the terms of any investment that you intend to make.
- Research the parties involved and the nature of the investment.
- Be cautious when dealing with individuals outside of your own country.
- Contact the Better Business Bureau to determine the legitimacy of the company.
One of the biggest investment frauds that has continued for many years is the Ponzi Scheme. All
older investors are paid dividends from new investors. This can go on for a long time and everything
seems so great.
The person in charge of this phony investment company does nothing to actually invest everyone's
money except to live off the money as it comes in with his salesmanship of selling investments to
people that trust him without digging deeper to check the company out.
Finally, when he finds out he has too many investors to pay dividends to because he has not
brought in enough new invester's, the Ponzi Scheme begins to fall apart. The older investors start
complaining that they are not receiving dividend payments anymore and then to their surprise, their
original investment money has disappeared also.
Due diligence is mandatory to anyone contemplating investing their money.
