I don't usually send out Ever find a scam like
stuff like this, but this in your e-mail? We
what I have to tell you sure get enough of them
is just too good. For in the our Inbox.
the last 6 months I've
been developing the The Internet is a great
ULTIMATE TRADING tool for investors,
PROGRAM. I've figured allowing us to research
out exactly how to pick investments and trade
the next Microsoft. In securities with
fact, over the last year unprecedented ease.
I've had a 3000% return Unfortunately, the lack
on my investment!!! of rules on the 'Net
also makes it a perfect
In my investing program place for fraud to
there is absolutely NO flourish.
RISK. In fact, it's such
a SURE THING that we'll In this tutorial, we
guarantee you cannot look at the ins and outs
lose your investment. of Internet investment
Thing is, if you want a fraud. We examine
part of the action, different scams, see how
you'll have to send me they are carried out,
$499.95 today. There are and discuss how to avoid
just too many other them.
investors who want to
get in on this...
Online Investment Scams: is where money from new
Different Types Of investors is used to
Scams provide a return to
previous investors. The
Very few of the scams on scheme collapses when
the Internet are new. money owed to previous
Most of the swindling investors is greater
techniques we see today than the money that can
originated long ago as be raised from new ones.
telemarketing, direct Ponzi schemes always
mail, or even collapse eventually.
door-to-door selling
schemes. But the 2. Pump and Dump - A
Internet adds another highly illegal practice
troubling dimension to where a small group of
these old tricks. For informed people buy a
example, a fancy Web stock before they
site can create the recommend it to
illusion of a large and thousands of investors.
reputable company, The result is a quick
especially if it spike in stock price
provides links to followed by an equally
legitimate sites. fast downfall. The
perpetrators who bought
Here are some of the the stock early sell off
largest and most when the price peaks at
successful investment a huge profit. Most pump
scams: and dump schemes
recommend companies that
1. Ponzi Scheme - A type are OTCBB and have a
of pyramid scheme, this small float.
Small companies are more originating in another
volatile and it's easier country. It's extremely
to manipulate a stock difficult for your local
when there's little or law enforcement agencies
no information available to investigate and
about the company. There prosecute foreign
is also a variation of criminals.
this scam called the
"short and distort." 4. Prime Bank - This
Instead of spreading term usually describes
positive news, the top 50 banks (or
fraudsters use a smear thereabouts) in the
campaign and attempt to world. Prime banks trade
drive the stock price high quality and low
down. Profit is then risk instruments such as
made by short selling. world paper,
International Monetary
Fund bonds, and Federal
3. Off Shore Investing - Reserve notes. You
These are becoming one should be very wary when
of the more popular you hear this term--it
scams to trap U.S. and is often used by
Canadian investors. fraudsters looking to
Conflicting time zones, lend legitimacy to their
differing currencies, cause. Prime bank
and the high costs of programs often claim
international telephone investors' funds will be
calls made it difficult used to purchase and
for fraudsters to prey trade "prime bank"
on North American financial instruments
residents. The Internet for huge gains.
has eroded these Unfortunately these
barriers. Be all the "prime bank" instruments
more cautious when often never exist and
considering an people lose all of their
investment opportunity money.
Online Investment Scams: products, or lucrative
Bulletin Boards contracts. The opposite
can be done too. If
There are literally fraudsters hold a short
hundreds of investment position in a company,
boards where anyone can they will try to spread
rant, rave, or post BS. negative rumors in the
Online bulletin boards hope that investors will
(BBs) come in various panic and push prices
forms, including down.
newsgroups, usenet, or
Web-based boards. Some Here's the tricky part
of the larger BBs, like about BBs: anonymity.
those found on sites You don't know for sure
such as Raging Bull, who you're dealing with
Boards on Yahoo! and how credible they
Finance, and Silicon are. People claiming to
Investor, see thousands be unbiased observers
of messages posted on an who've carefully
hourly basis. researched a company may
actually be company
While there are many insiders, large
valid and useful posts shareholders, or paid
on these boards, a large promoters. A single
number of tips turn out person can easily create
to be bogus. Fraudsters the illusion of
most often use a pump widespread interest in a
and dump scheme on BBs small, thinly-traded
by pretending to reveal stock by posting a
inside information about series of messages under
big upcoming various aliases.
announcements, great new
In the aftermath of the of useful insights and
dot-com bubble, bulletin great stocks. There are
boards experienced a many good newsletters
dramatic drop in out there, but some are
traffic. Thankfully, just promoting stocks
many investors realized under the guise of
they couldn't believe presenting investors
everything they read with "free unbiased
online. But that's not information."
to say there is no
valuable information on In fact, many companies
BBs. Before Enron went hire employees or pay
bankrupt, posts were people to write online
made online that newsletters to promote
revealed many of the their stock. In theory,
fraudulent practices this practice is not
taking place at the illegal. But federal
energy giant. securities laws require
Regrettably, at the same newsletters to disclose
time, there were who paid them, the
countless posts that amount paid, and the
were bullish on Enron. type of payment. Most
It's nearly impossible fraudulent newsletters
to sort out the valuable fail to provide this
posts from the fake information. Instead,
ones. they lie about the
income they receive,
Online Investment Scams: their independence,
Newsletters their research, and
their historical
Almost every stock pick results. They stand to
site offers a newsletter profit
that is supposedly full
handsomely if they away good tips to random
convince investors to people for free.
buy or sell particular Besides, no reputable
stocks. Newsletters also company would spam to
use the pump and dump get their name out. The
technique discussed smartest thing you can
earlier. With enough do is hit your delete
people on the list, it button.
is possible to create
movement in the price of Identifying these shady
small stocks. e-mails isn't tough.
Besides promising huge
Even worse is junk results with no risk,
e-mail or "spam." As look for CAPITALIZED
spam costs next to LETTERS WITH MANY
nothing to create, it EXCLAMATION MARKS!!! FOR
has become the tool of SOME REASON SCAM ARTISTS
choice for many THINK YOU'LL LISTEN IF
fraudsters. Often these THEY WRITE LIKE THEY ARE
messages consist of SCREAMING AT YOU!!!
“get-rich-quick” schemes Another clue is when the
and offer "guaranteed e-mail comes from free
results." If the sender e-mail providers such as
is unfamiliar to you or yahoo.com or
the message is addressed hotmail.com. Spammers
generally (great use these addresses to
investment tip) it is hide where the original
likely a scam. Brokers message comes from.
and traders don't give
Online Investment Scams: Fax: 202-942-9634
Dealing with Investment
Scams You can forward spam or
copies of fraudulent
If you come across or message board postings
are the victim of an to:
investment scam, the
best thing to do is enforcement@sec.gov.
report it to the SEC.
They have online forms When contacting the SEC,
to contact them at their you only need to give as
complaint site: much personal
http://www.sec.gov/compl information as you wish.
aint.shtml. However, the more
information you give
You can also write them them, the better they
at: will be able to help
you. Include specific
details of how, why and
Securities and Exchange when you were defrauded
Commission with any contact info
Office of Investor you have on the
Education & Assistance fraudulent person or
company you are
450 Fifth Street, N.W. reporting.
Washington, D.C.
20549-0213
