Good investment chances are something that each person wishes to obtain. Taking advantage of such an opportunity, fraudsters create new types of investment opportunities to trap a new innocent investor. They then disappear in thin air with the money. Some of the most popular investment scams are as follows.
High returns
These scammers take help of the features such as greed that one holds. They tell the traders to start investing little and show that they have earned profits within a week. After winning over their trust and then ask them to invest a huge amount. After they invest a lot, they run away with the trader’s money and no longer answer their phone calls and messages.
Advance fee
Another investment scam is the advance fee system. The victim is often demanded to pay money upfront to profit from many returns later in the monthly investment method. The trick here is that the broker will take the money and run away.
The scammers usually go for investors who have lost funds recently. They will contact investors and offer them aid by regaining the losses. They will say they can buy or exchange assets or cryptos on their part, but they first require to give an upfront fee. It is when the investors suffer the money loss.
Unsolicited mails
You will often get unsolicited males stating about an investment that will provide you with many profits. You click the link that leads to a message that leads to a particular website where it asks you to input your details. Some input the essential information. The innocent ones give the credit card details. Then they take their details and sell them out in the market. The investor is a victim of identity theft.
Pension scam
This scam targets individuals who have had many retirement savings in a Locked-In Retirement Account (LIRA). Such an account doesn’t allow money removals for a specified period, like until you reach 55-60 years. There are limits on the cash you can withdraw each year, and you still to pay taxes.
These scammers promote ads worldwide where you can be exempted from paying taxes on your locked-in amount by purchasing shares for a particular company. It would be best if you took credit. To get that credit, you must sell your purchases and hold in your LIRA and use the capital to buy the company’s shares the investor is proposing.
In return, the scammer ensures a loan return of approx 60% -70% on the capital that is being spent. They will take a fee for all the work that has been done. You will often be directed to pay the expense by cash so that the tax office doesn’t question you. Unfortunately, the investment will be pretty useless as you might never see the credit going in, and all your retirement savings would be wasted.
Ponzi and pyramid scheme
Ponzi and Pyramid Scheme works on the networking basis where most scammers will hire one individual and ask that particular individual only to receive a profit if and only if he could sign up new investors for that specific scheme. Then it goes on and on. Investors keep on stacking up. They receive the primary profits, and soon the scam is usually broken, and the primary investor vanishes all the money they have made.
Just stay safe with your money and invest wisely.