TOP DRAWER ARTICLE

Don't Be Fooled by These Investment Scams
by
HL Carpenter

In this low interest rate environment, with stock and commodities markets in what seems to be constant flux, your search for investments with a decent return may lead you out of your comfort zone and into dangerous territory.

To keep you from wandering all the way to the land of the con artist, here are three shady investment deals the Federal Bureau of Investigation wants you to be aware of.

Bond Fraud - This flimflam goes under many different names including Accepted for Value and Strawman Redemption. For a hefty fee, you'll receive a "kit" full of legitimate-looking forms. The fraudster claims the documents will teach you how to access bonds listed in your name but controlled by the US Government. The truth: You're out whatever you pay for the worthless paperwork.

Prime Bank Note Fraud - The scammer will assure you this high return/short term investment comes with a "prime bank" guarantee from a well known international financial institution. You may even receive forms that claim to be from the (legitimate) International Chamber of Commerce. All you have to do: Send your money to a foreign bank - where it will disappear, because there is no such investment.

Market Manipulation Fraud - Hustlers buy a low priced stock, pump over-the-top hype to increase trading volume, then sell, taking all the profits. Your take: A worthless investment.

Originally published May 2011.

Last update: May 7, 2011