• Login:
Welcome, Register Here
follow PropertyTalk on facebook follow PropertyTalk on twitter Newsletter follow PropertyTalk on LinkedIn follow PropertyTalk on facebook
Results 1 to 1 of 1
  1. #1
    Join Date
    Sep 2003
    High up above and deep down under

    Default Top scams to avoid

    Top scams to avoid

    By JOHN WASIK - Reuters Last updated 08:18 05/10/2010

    OPINION: It’s not hard to find the hottest investment scams. Just read the business headlines. What’s making money?
    The who’s who of scamsters are not household names like Bernie Madoff. They are guys working the Internet, selling the next "green technology" or smoothly working Ponzi schemes in church groups. They might even be your neighbor.
    I just got an email from someone I didn’t know in England who claims he was beaten and stranded. And all he needed was about US$10,000 to get back home! Coincidentally, I also met a fellow with the same story on the streets of Baltimore, although he was asking for considerably less.
    These frauds are often hard to identify because our skeptical reasoning is often clouded by trust and greed (on our part), which the perpetrators count on when they work their wiles.
    I had a chance to catch up with some state securities cops recently. They are spotting some compelling pitches that are trapping investors all over the country.

    Forex Trading. This is short for foreign exchange and currency, which is roughly 50 times the size of the stock market. Schemes involving market-beating software and techniques abound. The biggest banks and institutions trade every day. You think you can beat them?
    Exchange-Traded Funds. While ETFs are perfectly legitimate listed pools of money, the idea that you can use them to make a killing on gold, foreign stocks or a single industry is ludicrous. Nobody has a product that can best the market consistently.
    Environmental Technologies. Sure, wind and solar look awfully good right now, but the chances you will be able to get in on the ground floor of a breakthrough technology at a good price are slim to none.
    Neighbours Selling to Neighbours. Regulators call this "affinity fraud."
    They could be part of an association, church, group or investment club. One such scam, called "blind real estate pools," involve brokers who sell interest in properties — that they don’t actually own. Joe Borg, Alabama Securities Commission director, said he’s seen these schemes popping up in the south of the US. Military families near major bases also are being pitched "Iraqi dinar" schemes, where they are speculating on an upsurge in the country’s currency.
    Commodity Scams. Name the commodity and there’s some kind of scam attached to it. With the price of gold hitting record highs, gold-mining fraud has become popular in the West. Others may involve oil and gas extraction.
    "Off the books," special or private placement deals. Unlisted securities are always a perennial trouble spot. Believe me, no small investor is going to get a better deal than the banks and guys on Wall Street. The only people getting rich off of these opportunities are the purveyors of them.
    Variable Annuities. Like ETFs, these are legitimate insurance products, although they are rarely suitable for most investors.
    How do you avoid these deceptions? Employ the smell test. Are the returns touted far above market rates? Is high performance promised in a short period of time? What are the total fees and commissions involved before a single dollar is invested?
    Do some realistic comparisons. Remember, the S&P 500 stock index was down 10 percent over the past decade despite rising 23 percent last year. Also ask for a prospectus and if what is being sold is a listed security.
    Better yet, check the background of the broker or adviser selling the investments. Do they have a criminal or disciplinary record?

    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx


Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Fighting Back Insurance Scams
    By elorasolomon in forum World in General
    Replies: 1
    Last Post: 20-05-2015, 06:07 AM
  2. Why men are easy prey for investment scams
    By Marc in forum Coffee Lounge
    Replies: 3
    Last Post: 15-06-2011, 10:52 PM
  3. Tips to suss out scams
    By muppet in forum Property Library links
    Replies: 4
    Last Post: 09-05-2010, 06:28 PM
  4. Make a move on tenancy scams
    By muppet in forum Tenant Stuff (NZ)
    Replies: 0
    Last Post: 30-08-2009, 10:26 AM
  5. Old Scams - New Twist
    By Wayne in forum General (NZ)
    Replies: 0
    Last Post: 02-06-2009, 02:54 PM
  6. Government cracks down on mortgage scams
    By jenny_pt in forum Regions News (USA)
    Replies: 0
    Last Post: 09-04-2009, 10:52 AM
  7. Even the savvy can get burned in scams
    By muppet in forum Other Investments
    Replies: 0
    Last Post: 04-11-2007, 08:07 AM
  8. Pro Forma Invoicing Scams
    By Marc in forum General (NZ)
    Replies: 1
    Last Post: 04-04-2005, 06:15 PM
  9. The New York Property Bubble
    By murray-spi-investments in forum General (NZ)
    Replies: 4
    Last Post: 07-02-2005, 12:43 PM
  10. Nigerian Scams
    By donna in forum Forum Funnies
    Replies: 8
    Last Post: 16-01-2004, 10:44 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts