Attorney Matt Wolper details some of the most common types of investment fraud and different tactics used.
FORT LAUDERDALE, Fla., Oct. 11, 2022 /PRNewswire/ — Investment fraud is becoming increasingly common. In the last year, the total number of cases has risen by 80 percent, to 89,518. Many times, the fraudsters are looking to prey on unsuspecting investors.
They use different tactics to entice investors into these schemes, who don’t realize what is happening until it is too late. Here are the four most common types of investment fraud.
Seminars
Fraudsters often offer seminars, posing as financial advisors who can help you with your planning. They talk about the different investments and how you will get larger returns by using their unique approaches, which are touted as risk-free and designed to give you the maximum returns. The problem is that these fraudsters are not licensed, and they don’t disclose hidden fees, commissions, and conflicts of interest. Often, these investments are phony opportunities that are not discovered by investors until much later.
Ponzi Schemes
Ponzi schemes promise large returns that are paid out to investors with the funds they get from the later investors. The last investors are the ones that end up losing all their money when the scheme folds. The newest investors at the bottom are always paying money to the oldest ones at the top. The focus is on bringing in more investors and never selling any real product or…
