Unfortunately we live in a world where scammers are busy every day trying to cheat honest consumers out of their hard-earned money. Many people believe that scammers prey on the elderly only but, the fact is, there are many investment scams that target affluent, intelligent people. Below are a number of the worst, in no particular order, that you definitely need to watch out for if you’re looking for a vehicle to invest in. Enjoy.
Investment Scam #1: Currency Scams
Because of the fact that they have the potential to bring high returns, are exceptionally complex and bring a bit more credibility, currency scams have become extremely popular with criminals.
Investment Scam #2: Ponzi Schemes
This scam takes the cake for being the one that has stolen more money for more people than any other type of investing scam in the world. Early investors in a Ponzi scheme are actually paid with the money that later investors put into it, making them believe that they have an incredible investment that they then tell their friends, family and colleagues about. Without excessive demands for distributions, a Ponzi scheme can perpetuate itself for decades but, when it all falls apart, all that money disappears.
Investment Scam #3: Promissory Notes
Sold to senior citizens looking for a high interest rate and investment with low risk, promissory notes look like an excellent investment choice. Because of the fact that there aren’t any actual investments however, they are definitely not.
Investment Scam #4: Precious Metals
Like investing in currencies, investing in precious metals is very “exotic” and seem like a great idea. The only problem is, no actual precious metals like gold bullion, silver coins and so forth actually exist. Purchasing interest in a “gold mine” is no better, especially when they don’t produce any gold.
Investment Scam #5: Prime Bank Scams
If you think that the wealthy have exclusive investment opportunities that the general public doesn’t have access to, you’re a prime target for a prime bank scam. The wealthy don’t have any access to better opportunities than everyone else, but it sure sounds like a good idea. It’s not.
Investment Scam #6: Investment seminars
The average investment seminar is only making money for one person; the person presenting the seminar. Let’s face it, if the person who was giving that seminar had used their own ideas to get rich, what would they be doing staying in crappy hotels and wasting their weekends talking to strangers and trying to convince them to purchase their books, lectures and DVDs?
Investment Scam #7: Life Settlements
Because these sound like a great investment, many seniors fall for them. The newest one, Senior Settlements, purchase interests in the death benefits of healthy people, but the fact is that it’s extremely difficult to predict when someone is going to pass away. What happens next is that any money you invest it is tied up for years, which is never a good idea.