7 Common Investment Scams
The North American Securities Administrators Association (NASAA) recently published its list of common investment scams. Here are seven of the most frequent that could waste your time, money and energy.
1. Affinity Fraud: Con artists foist questionable investments on members of close-knit political, ethnic or religious groups.
2. High-Interest Promissory Notes: Offered by companies that advertise terrific returns. The higher the number, the more likely the scam.
3. Sale and Leaseback Contracts: Targets are offered equipment like ATM machines, Internet booths and payphones, which often don't exist.
4. Oil and Gas Investment Fraud: These scams prey on oil fears by touting new drilling discoveries.
5. Personal Information Scams: These happen when someone pries out financial data and then uses the information to open a credit account.
6. Self-Directed Pension Plans: Targets withdraw money from an existing pension plan, which is then funneled into a worthless venture.
7. Recovery Rooms: If you've been scammed once, so-called "reloaders" come back to you from "recovery rooms," promising to recover that sum.
If you think you are the victim of one of these scams, or are aware of one, contact the U.S. Securities and Exchange Commission (SEC) at www.sec.gov or 800-732-0330.
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1. Affinity Fraud: Con artists foist questionable investments on members of close-knit political, ethnic or religious groups.
2. High-Interest Promissory Notes: Offered by companies that advertise terrific returns. The higher the number, the more likely the scam.
3. Sale and Leaseback Contracts: Targets are offered equipment like ATM machines, Internet booths and payphones, which often don't exist.
4. Oil and Gas Investment Fraud: These scams prey on oil fears by touting new drilling discoveries.
5. Personal Information Scams: These happen when someone pries out financial data and then uses the information to open a credit account.
6. Self-Directed Pension Plans: Targets withdraw money from an existing pension plan, which is then funneled into a worthless venture.
7. Recovery Rooms: If you've been scammed once, so-called "reloaders" come back to you from "recovery rooms," promising to recover that sum.
If you think you are the victim of one of these scams, or are aware of one, contact the U.S. Securities and Exchange Commission (SEC) at www.sec.gov or 800-732-0330.
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posted by Bob Moser at
9:40 PM
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