Seminars On Financial And Investment Planning

Scam Artists use investment seminars and pose as financial planners offering appealing and bizarre investment advice to the unsuspecting investor. Much of the information they offer during these sessions may require the participants to be licensed or registered, and they might not reveal conflicts of interest and hidden charges and commissions. Investors are often unaware of the hidden costs and fake investment opportunities until it's too far too late.

Annuities

A contract that is written by a life insurance firm to guarantee a steady income for a specified amount of time. It is usually paid on a monthly basis or in periodic instalments, in most cases to supplement retirement income. Investors are frequently enticed into purchasing annuities which are unsuitable, misguided and inappropriate for their situations. Since annuities are a vital form of financial protection for seniors, the misleading and incorrect information that is provided to them can be devastating.

Illegal securities offered as Individual Retirement Account (IRA) Investments

Self-directed scams that are not vetted by the IRA custodians are offering to hold illegal and fraudulent securities in IRA accounts. When the fraudulent or illegal nature of the securities become obvious, investors could not just lose all of their investments, but may be faced with additional IRS and administrative penalties too. Many investors believe that an investment within an IRA account is safe and legal. Investors should be sure that the investment has been properly registered and is being offered by a properly licensed salesperson.

"Callable" CD's

These more lucrative certificates of deposit aren't expected to mature until 10-20 years, If the bank, and not the investor "calls" or makes them redeemable. If you redeem the CD early may result in huge losses, up to 25% of the original investment. The sellers of callable CDs typically fail to disclose the risk and restrictions to investors.

Promissory Notes

Promissory Note scams provide investors with promises of high returns with low risk. They are often sold by independent insurance agents. Many of the notes are short-term loans issued by a fraudulent company or an institution that doesn't exist. Each one promises high returns of up to 15% monthly with little or no risk, typically with the maturity of nine months.

Predatory credit

Predatory lending is various mortgage lending practices for homeowners, which can force consumers to sign loan agreements that aren't in the consumers best interest or are not affordable for them. In order to convince the borrower to sign a loan agreement to sign a loan agreement, the private placement program scam artist could use deceptive sales techniques and make false promises.

Prime Bank Schemes

Scammers offer triple-digit returns to investors, by giving them access to the portfolios of investments of the top banks around the globe. These scams are typically targeted to sway conspiracy theorists , and they promise access to "secret" investment portfolios.

Internet Fraud

The wide-ranging reach of the Internet and alleged anonymity are two appealing features for scam artists. They use the Internet for a wide variety of scams including pyramid schemes, the promotion of fraudulent "prime bank" investment frauds; and enhancing the selling of thinly traded stocks. The Attorney General advises investors to stay clear of anonymous financial advice via the Internet through e-mails or in advertisements.

Affinity Group Fraud

It happens that private placement program scam artists make use of their victims' religious or ethnic identity to win their trust as humans are inclined to trust those who share similar beliefs. Advertising in the media that serves particular ethnic groups is utilized to identify potential victims, usually with promises of training, employment or financial guidance. The scheme is often distributed through the word of mouth.

Ponzi/Pyramid Schemes

Ponzi schemes are frauds where huge returns are offered to early investors with money from investors who later invest which then lose all their funds as the house is destroyed. A pyramid scheme entails the collection of funds from people at the bottom (new investors) to pay the initial investors who are at the top with the primary focus on bringing in new members/investors and not on selling the service or product.