Beware of Bond Fraud

Beware of investment scam artists who offer you above-market interest rates and guaranteed returns. These individuals are not offering you any products that are worthwhile, but rather are swindling you out of your money. They may even ask for personal information, financial information, or a photo of your ID. Lastly, beware of investment websites that ask for passwords and other personal information. If you feel as though you are on a legitimate website, you are likely to provide this information and send money.

Beware of high-pressure efforts to convince you to send or transfer cash

Be suspicious of calls and emails from “IRS” representatives. Fake IRS representatives can be very convincing when they threaten nonpayment of unpaid taxes. If you owe money to the IRS, contact the government agency separately. Beware of relatives involved in scams. These scammers may seem credible because they have gleaned information about your family online. But beware! You could end up sending money to the wrong person.

Beware of investment products offering above-market interest rates and guarantees

Be wary of investment products that claim to offer guaranteed returns, above-market interest rates, or both. These claims often rely on imprecise calculations, or on an unlikely combination of events. Many of these situations could be the result of an accident, not a deliberate action. To make the most of any investment opportunity, spread your money among many different funds, and avoid investing too much in one strategy or fund. Guarantees are only as good as the company that issues them.

Beware of investment scam artists

Beware of investment scam artists and avoid falling victim to their tactics. Many con artists work within a community or group that you can trust. This allows them to gain the trust of multiple people at once. Scam artists may join a civic club or religious organization, or they may work within a military unit or veteran’s group. By using the affinity of this group to attract new investors, they may be able to get away with their fraud.

Scam artists can also take advantage of investors’ fears and uncertainty to lure them into investing. In some cases, they use the fear of the market or even coronavirus to lure people. Investing requires a high degree of risk, so investors should be aware of this and seek the advice of a financial expert before making any decisions based on fear. Beware of investment scam artists and ask these three questions before investing.

Fraudulent investment schemes may take advantage of the naivety of investors. Often, scam artists pay out high returns to early investors while using the money of late investors. Before investing, make sure you obtain written information about the risks of the investment and how to withdraw your money if you are not happy with the results. If you’re unsure about whether an investment is legitimate, consult a registered investment professional.