Bonds Investment Scams Review

Investing in bonds can be a great way to earn a high rate of interest, but you need to be careful to avoid bonds investment scams. There are several types of scams in the marketplace that will take advantage of you.

High-yield investment scams

HYIP (high yield investment) scams are a type of pyramid scheme that promises investors high returns. The operators of these scams use social media, including Facebook and YouTube, to advertise their schemes. They then recruit new investors, using the funds of these new investors to repay older investors.

The SEC warns investors not to put their money in high-yield investment scams. The agency also investigates other types of securities schemes, including Ponzi schemes. HYIPs offer investors a potential return higher than the market average, but also have a high risk.

Some investors have lost hundreds of millions of dollars to HYIP scams. The SEC encourages people to report any investment they believe is a scam. It encourages consumers to check the EDGAR database for free information on companies.

Commercial vs residential real estate investment scams

Investing in real estate can be fun and lucrative. Whether you choose to buy a single family home or a multi-unit commercial building, it's important to understand the pros and cons of each to make the best decision. Fortunately, there are some things you can do to reduce your risk.

First, you should consider your personal risk tolerance. If you're a cautious type of individual, you may want to steer clear of commercial real estate. The red tape and legalities involved in investing in commercial property can be daunting. If you're looking to get your foot in the door, you may want to enlist the services of an experienced real estate agent.

Clone firm investment scams

Several reports of clone firm investment scams have emerged. These fraudulent companies use the names, addresses and other details of genuine financial services firms. They then try to convince the unsuspecting investor that they are dealing with a legitimate company.

These fraudsters also use high-pressure selling tactics, which may include offering free company reports and other marketing gimmicks. They also use a variety of methods to lure potential investors, including email and telemarketing. In fact, the Financial Conduct Authority (FCA) issued a warning over the topic, noting that the number of reports of clone firm investment scams increased by 29 per cent in April 2020.

Imposter bond investment scams

BN Capital and Barrenjoey are the latest names on the block to be dragged to the mat by imposters. In fact, the aforementioned scams may be responsible for losing consumers more than $20 million in the next four years. The good news is that there are a number of companies doing their best to catch the scams in the act. The Australian Securities and Investment Commission has taken some steps to help, including the creation of a new unit dedicated to fraud prevention. And the police have been working with banks to identify victims.

One of the most common ways to fall victim to these scams is by clicking on a fake website and transferring money to an unknown entity. According to ASIC, these scams have cost Australian consumers more than $242 million in 2018. That's a lot of money to lose. In addition, consumers are the victims of scams that take advantage of their good faith to get a quick buck. Often, the fraudsters are so convincing that victims don't even check their accounts for months.

Exempt securities aren't scams

Whether you're an investor or a potential investor, you might be wondering what kind of investments are considered exempt securities. These are investments that are not required to be registered with the Securities and Exchange Commission (SEC). Exempt securities are often tax exempt and backed by the government. They may be offered by financial institutions, insurance underwriters, or fiduciaries.

Exempt securities aren't scams, but they aren't a guarantee. Investors are still subject to anti-fraud provisions that protect them against misleading statements. Companies can still be liable for false statements about exempt securities.

In the 1930s, the Securities Act was created to create a stronger law against fraudulent activities. It was a response to the 1929 stock market crash. In addition, it was aimed at creating more transparency. It also was created to protect investors from fraud during security sales.

Targets people from the age of 55

Among the throngs of Baby Boomers, the elderly are a prime target for would be thieves with the latest in high tech gadgets in their arsenal. Not only is a plethora of tech in their possession, but a large percentage of the populous has little to no computer knowledge despite their best efforts. A savvy scammer will glean a wealth of information about the lucky few. Some of this information could be used to perpetrate even more unscrupulous schemes. There are many such schemes that are a dime a dozen, a large percentage of which are in the hands of well heeled perpetrators.

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