Even Savvy Investors Can be Caught By "Good Will" Fraud
Are you a conscientious investor who wants to put your investment cash
where it can do the most good for the world while you build your portfolio?
Are you getting interested in the buzz about so-called “safe”
and “tax-free” investments overseas that have charitable intentions?
We all want to do our part to make the world better place, and the causes
and technologies in which you invest really could make a difference over
the long term. Unfortunately, out of the many investors we’ve seen
who have lost money in an investment scam, many were initially lured in
by con artists preying on the investor’s good intentions.
Good Intentions and “Good Will” Investment Fraud
Although there are many environmentally and socially conscious investments
out there that are perfectly legitimate, some con artists will also try
to pitch these kinds of investments to take advantage of the investor’s
good will. These kinds of “good will” investment fraud often
take the form of high-yield offshore scams or
Ponzi schemes, and they sometimes employ complicated investment strategies or expensive
investment seminars to lure investors. The pitch is usually designed to appeal to your emotions
or sense of ethical responsibility.
It often centers on:
- The development of a new, “green” technology
Rebuilding after a
natural disaster or national crisis
- Revitalizing a struggling economy
- A discovery that will improve living conditions for people across the world
To avoid “good will” investment scams, make sure that you thoroughly
understand the risks of the investment, how it works, who is promoting
it, and how it fits into your long-term financial plan.