Beware of Investment Scams
Interest rates are down and the stock market is in a slump, so you are trying to find some alternative investment opportunities. Well, watch out because you may find yourself involved in an investment scam instead.
For example, a local company promises a high return on your money, so you invest and immediately start to receive an excellent return on your investment. Great! You invest some more, but soon that high return dwindles to nothing and the next thing you know the company is gone and so is your money. You may have been involved in the old-fashioned but very effective scam know as a Ponzi, or pyramid scheme, where the money of some investors is used to pay off other investors…until the whole thing finally collapses.
Another common scam involves the use of the name of an elite foreign bank. You are told that you will get a fantastic return because you will be privy to insider information ensuring that you are a winner. Unfortunately, it turns out to be a sure thing only for the scammer.