Have you ever received an investment offer that seems too good to be true? If so, it’s very likely the case. Popular and potentially catastrophic investing frauds exist all over the world. You probably must have heard of Iraqi dinar investment schemes and wondered if the return being promised is actually legit. To stay away from investments scams, it won’t be wrong to say that knowledge is power.
From the ever-suspicious pyramid schemes to currency investment scams, here is a list of common investment scams every potential investor must be aware of.
Ponzi schemes have defrauded more people than any other type of investment fraud.
It’s the type of fraud that entices investors to dig deep. Suppose an Iraqi Dinar guru lures you into investing your money in the currency. The scheme pays profits to initial investors with the funds received from recent investors leading the victims to believe it’s a legit business activity. These innocent investors remain unaware that the source of funds was other investors. As long as there are no unreasonable demands for profits, Ponzi schemes can last for decades.
2.Prime Bank Notes
Prime bank investment scheme is the type of scam in which the Investors’ cash will be used to buy and sell ostensibly prime bank products, according to proponents of prime bank programs claiming that the investors will earn guaranteed, high investment returns with little or no risk. Promoters use complicated and sophisticated words to make the scams appear legitimate.
These could be anything – a bank guarantee, private funding project, guaranteed banknote, trade slot, trading platform, an offshore trade program and the list goes on.
You are asked to invest a few thousand dollars to a hundred thousand dollars. Returns of incredible wealth, often in the $100 million areas, are promised. Details concerning the program’s operation are either lacking or, upon closer inspection, seem illogical. The money invested in Prime Bank Notes is rarely recoverable so avoid it all cost!
3.Pump and Dump Scheme
In this type of scam, fraudsters promote the purchase of a publicly listed stock in order to push up its price (pump up the market), then sell it into a phony market they have created (dump their shares), making a great profit. When the promotion is over, investors will have a stock that is worth a fraction of what they bought for it.
To operate a successful pump and dump, the promoters must own or control most of a publicly-traded stock of a company. They do so by involving colleagues, family, or the cult of a Dinar guru.
The stock is marketed in a variety of ways. To promote the stock to investors all around the world, the scammers may use social media, boiler rooms, or stock spam. They might even pay newsletter writers to promote the company as a fantastic buy or a fantastic investment. All of this work raises the stock price, allowing the con artists to sell at a much greater price than they paid when they initially bought the shares before the market price plummets when the con artists cease promoting the company. In the end, the original stockholder cashes out the premium.
4.Retirement Savings “Unlocking” Scheme
The promise of easy and quick access to the cash value of your retirement savings account or income plan is a typical element of such fraud. These schemes may also promise high profits on the remainder of the investment, and the luxury of not having to pay taxes.
The strategy typically involves purchasing stock or units in a public or private corporation, as well as a financial instrument such as bonds, promissory notes, or mortgages.
To hide the unlocked transfer from your financial institution or advisor, promoters or their agents may encourage you to move your retirement savings into a self-directed account. You have power over your funds once you’re in a self-directed account, and the promoter will give you advice on what to buy. You might end up investing in a fraud such as Iraqi dinar and the promoter would encourage you to keep up with dinar updates just to lure you. The end result: you will lose a part, if not all, of your funds.
Individuals or firms that promote these investment schemes package them in several ways, but the final result is the same: you lose a substantial amount of money, which is your retirement saving.
Trading currencies is one such investment scam that has the potential to generate big returns while also being extremely sophisticated, which makes them credible among investors.
Dinar scam is an example of such a scam. The myth of an Iraqi dinar revaluation has been circulating for some years. Thousands of people have bought Iraqi dinars from fast-talking promoters and online dealers in the notion that when the currency is revalued, they will make a profit of up to 1,000 times their original “investment.” All such Iraqi dinar predictions so far have proven to be untrue!
How to Stay Away from Such Investment Scams?
Fraudsters are becoming smarter in their attempts than before to steal your money. Even if the investment scheme appear legitimate, there are some red flags that you must watch out for to stay safe. Let’s look at them, shall we?
Understand Before Investing
Be on the lookout for odd irregularities hidden behind the complicated language. The investment strategy should make sense. If you don’t understand it, don’t invest in it!
High Return/Low Risk
All investments have some level of risk. But if the return promised is too good to be, stay away!
The Unusual Pressure
Invest now before it’s too late!
Don’t let this excellent opportunity pass you by!
Promotional lines like these are always dubious If there is an unusual pressure, it’s a red flag.
Finally, always ask yourself if you really understand what you’re getting into before you make a commitment. When in doubt, you are better off walking away than investing your hard-earned income just because it sounds profitable or exciting.