If you have recently experienced a large financial gain, and you have the opportunity to invest and return that money, do not immediately agree to it. Consider this offer well, because you are an easy target for many scammers. They will use your current vulnerability to steal your money. Deceptive and fraudulent business practices are part of everyday life.
No matter how professional some companies are, they have to have coverage for everyone. So check their licenses, offices, data, accounts and reputation. Get the help of a lawyer, as well as CFPB. Fraudsters are constantly finding new ways to deceive you, and we have listed some of the most popular investment frauds.
Source: inman.com
Contents
1. Payment in advance
This type of fraud is called an advance fee. For example, you pay a scammer in advance to take advantage of an offer that will be worth much more later. However, he takes your money and you never see him again. The scammers who use this trick mainly target people who like to invest in risky investments, and most of them are people who have lost a large amount of money in business. Due to such despair, they do not have the ability to reason and accept this offer.
2. Mortgage fraud
Lawyers behind mdf-law.com told us they encounter this type of fraud every year, and they are mostly carried out by real estate and mortgage experts. Such people are very happy to abuse their knowledge and authority. There are several signs that you are dealing with these scammers. For example, if you are promised a loan change or are asked to pay a fee before you receive the service. Fraudsters will often advise you to stop paying your mortgage or not to contact your mortgage service provider. Another common suggestion is to pay someone other than your service technician. The whole process of buying is much slower than usual, and you will hardly get answers to your questions or you will not get them at all.
If any of you are asked to sign papers you have not read before, take this as a warning sign. To protect yourself from people like this, try to find recommendations. That way you will stay away from suspicious people. Don’t forget to request a license before agreeing to cooperate. Avoid anything that is too good to be true and do not sign papers that you have not read or understood. It is best to do such work only with the help of a qualified advisor or lawyer.
Source: realtor.com
3. Pyramid schemes
Another scam in the series that can often be seen is this one. It was named after a well-known fraudster who used this scheme many years ago. If you are a victim of fraud, you will be asked to pay earlier through funds deposited by later investors. The point of this scheme is to offer you investment claims that are not realistic and that are completely fabricated. There is probably no physical asset or investment, but there may be very few. You will realize that you have been deceived only when the fraudster does not have to return you enough money as you expected.
The more people fall for this trick, the harder it will be for fraudsters to maintain fraud. All the money will be spent on personal expenses and thus speed up the discovery process. This scheme is a marketing strategy that takes place on several levels, because the engagement of a large number of investors is a potential return. However, the problem is that there is no investment company or product that promises to maintain the strategy.
4. Boiler room scam
This scam is carried out by several people. For this purpose, they use fake offices called boiler rooms. They will do anything to convince you that their company is real. For example, they will even refer you to their website of a company that will look great. In addition, they will certainly give you their phone number, as well as a respectable address.
So, everything will seem completely legitimate, except that none of this exists. The company is completely fabricated, the content on the website is fake, and the office may be temporary. Before you realize all this, you will lose money, the fraudsters will close the store and find the next victim.
Source: timedoctor.com
5. Real estate fraud
Real estate investments means attracting investors to invest in real estate. This will attract a large number of people, because many earn a lot from this business. However, before you agree to such a thing, you need to make sure that it is not a trap.
For example, real estate investment seminars involving stocks, bonds and mutual funds are known for such scams. In order to act as convincingly as possible, fraudsters use fake seminar attendees who later double or triple their winnings through a simple investment.
6. Offshore investing scam
The trick is to send your money to another country to avoid or reduce taxes. However, pay attention to such offers and remain skeptical about them. Otherwise, you could owe the government money for arrears of taxes, interest and fines. These are not the only risks you should expect.
Source: checkfirst.ca
In recent years, the value of virtual coins has risen sharply. Stories about crypto millionaires have also spread, which has attracted many other investors. However, there are many stories about failed investments and they continue to appear. While some investments are worth the money, others can be nothing but a Ponzi scheme, etc. So research everything before you invest your money.
8. Social media scam
Social media is one of the best things that has happened to us. They have enabled people to connect with each other more easily and quickly, and this has brought with it many other benefits. Business relations have become better, business profits are much higher, but there are more and more fraudsters. Social networks are platforms that contain a lot of groups or organizations, and some of them are malicious.
Fraudsters will build credibility and gain the trust of other members of the group for a long time. This will build a secure path to their personal information, political views, employment history or photographs. Before you agree to invest online, assess the risk. For example, some of the red flags are promises of high risk-free returns, websites with little or no information, and so on.
Source: defense.gov
Conclusion:
To avoid problems with money or the law, do not do business without the presence of your lawyer. If a scam has already occurred, report it as soon as possible, close your accounts and change your passwords. Report this to the credit bureau if necessary and obtain credit reports.
