Seminars On Investment And Financial Planning

Scammers use seminars on investing to pretend they are financial planners and offer an array of false investment advice. Much of the information they offer during these sessions may require them to be registered or licensed, and they might fail to disclose conflicts of interest as well as concealed charges and commissions. Investors may not be aware of the hidden costs and fake investment opportunities until it's too far too late.

Annuities

A contract that a life insurance firm creates to guarantee a particular amount of income for a set period. The payments are typically made on an annual basis or in installments, typically in cases to supplement retirement income. Investors are frequently enticed to purchase annuities that are unsuitable, misguided and not appropriate for their circumstances. Annuities are an important type of financial security for seniors. But they are also dangers due to the incorrect and unwise information that is often given.

Illegal securities Offered as Individual Retirement Account (IRA) Investments

In recent years, unscrupulous self-directed IRA custodians offer to hold illegal and fraudulent securities within IRA accounts. Investors may lose all of their investments if they discover the fraud or illegality of the securities is discovered. They could also be subject to additional IRS and administrative penalties. Many investors believe that an investment within an IRA account is safe and legal. Investors must ensure that the investment has been properly registered and is offered by an authorized salesperson.

"Callable" CD's

These deposits with higher yields won't mature until the bank redeems or calls them. If you redeem the CD earlier could lead to large losses upwards of 25% of the initial investment. Sellers of callable CDs often do not adequately communicate the risks and restrictions to investors.

Promissory Notes

Investors are frequently enticed by promisory notes scams that promise big returns at minimal risk. They are typically offered by independent insurance brokers. They are typically short-term loans, are issued by fraudulent organizations or institutions. They promise high returns up to 15% per month with the least risk. They typically have an expiration date of nine months.

Predatory lending

Predatory lending is a combination of predatory loan and mortgage practices. The lenders will pressure consumers to sign loan agreements that aren't the best for their needs or that they are unable to afford. The private placement program scam person who is performing the act may employ the combination of deceitful sales practices and false promises to convince borrowers to commit before they have an understanding of the contract.

Prime Bank Schemes

Scam artists claim that investors will earn triple-digit gains by granting access to the investment portfolios of the most prestigious banks around the globe. These scams are typically targeted at conspiracy theorists and promise access to "secret" investment opportunities.

Internet Fraud

Scam artists love the internet's wide reach and the assumption of anonymity. Scammers utilize the Internet to promote bogus "prime banks" investment opportunities, and to increase the value of securities that aren't traded. The Attorney General advises investors to stay clear of any financial advice that is not provided on the Internet, via e-mail or ads.

Affinity Group Fraud

It happens that private placement program scam artists use their victims' religious or ethnic identity to gain their trust, knowing that humans are inclined to trust those with similar beliefs. Advertising in the media that serves specific ethnic groups is used to identify potential victims typically with offers of training, employment or financial advice. The idea is typically propagated through word of mouth.

Ponzi/Pyramid Schemes

Ponzi schemes are scams that offer high-returns to investors based on funds from investors who later invested. Investors end with losing their entire stake when the house of cards collapses. A pyramid scheme involves the collection of funds from the lowest level of investors (new investors) to pay initial investors at the top with all emphasis on bringing in new members/investors and not selling the service or product.