The targets of investment fraud vary, but most are those who have no knowledge of investment. Therefore, it is important for anyone to know the forms of fraud under the guise of investment. On the other hand, the community must also know what the conditions are for an institution to become an investment institution legally. You can also call a trustworthy investment fraud lawyer if you’ve become a victim of a fake investment scheme.
Here are some schemes of investment fraud that are often used by fraudsters:
This Ponzi scheme is chain-chained so it is difficult to capture the brain or its main players. The trick is someone offering an investment with a large return.
Initially, the fraudster will receive what was promised, which is the return on investment. But what victims did not realize was that the benefits they received were money from the next people they were invited to. If this chain is broken, the promised benefits will stop anyway. The first person to build a chain will go with the money already obtained from the network below him.
The main offender or the person who started it is hard to catch and the one who is usually caught in the right-hand man. One thing you must remember is that the Ponzi Scheme is not Multi-Level Marketing (MLM). The Ponzi scheme does not have a clear product, either in the form of goods or services. Only investment promises with very high profits. So, you must be careful in distinguishing these two forms.
HYIP Investment (High Yield Investment Program)
This investment model promises high returns. For example, you are invited to invest a lot of money with a promise of 20% of the business results per month. Then the promised business is coal, oil, or technology-based business that is difficult for you to monitor.
It’s not all HYIP business is a scam, it’s just that you have to be more careful if you get an offer to invest. If the investment offers too high a profit share, then you must be suspicious.
Deception with gold investment
This fraud occurs by showing gold bars to potential investors. Unfortunately, the authenticity of the gold was not examined by potential investors. Then the fraudster will run away with cash from the victim.