Scammers have spent millennia refining old schemes and creating new ones
to separate a mark from their money. While people are constantly testing
out new ideas in an attempt to strike gold, the main rotation of scams
that you need to look out for remains more or less the same:
Ponzi Schemes: Ponzi schemes work by paying earlier investors back with later investor’s
money. When executed well, this cycle can last for a long time, potentially
securing the scammer billions of dollars before they’re caught.
Promissory Notes: This scam mostly targets senior citizens, the most commonly targeted demographic.
These notes are sold to investors looking for investments with high interest
rates and low risks in order to keep up their standard of living throughout
Loans: While loans on their own aren’t a scam, they can become one when
the lender isn’t actually a credit-worthy, collateralized borrower.
Currency Scams: These scams are especially popular with criminals because it can feel
exotic to trade foreign bank notes, and because the complexity in these
transactions can add an extra layer of credibility to the scammer.
Investing in Precious Metals: Similar to trading currency, investing in precious metals can seem like
an exciting prospect. These scams work because scammers are confident
that investors won’t visit the company or mine that supposedly contains
the metals, and will just take their word that everything is going well.
Life Settlements: These scammers usually target senior citizens with a terminal illness,
though they also go after people worried about what will happen to their
dependents after they die. It’s difficult to actually predict when
someone is going to die, and investing in these scams can lock up your
money for years, if not forever.
Unregistered Investments: There’s a reason regulatory bodies like the Securities and Exchange
Commission (SEC) and the Financial Industry Regulatory Authority (FINRA)
exist – keeping financial advisors, brokers, and brokerage companies
registered allows them to be regulated and tracked. Otherwise, anyone
could simply copy official-looking documents and offer “deals”
to unwitting investors.
Prime Bank Scams: These scams target people who believe that the wealthiest people have
access to exclusive investment opportunities that produce unbelievable results.
Investment Seminars: While seminars aren’t necessarily scams, the only people who directly
make money from them are the people who do the presentation. When the
ideas they teach are useless, attendees gain nothing of value and are
out the cost of a ticket.
Annuities: Fraudulent brokers may attempt to generate additional commission for themselves
by replacing your current annuities with lesser products. In most cases,
they don’t even inform their client of the transactions.
Meyer Wilson was founded to provide investors with the legal representation
they require to fight for the compensation they deserve. Though our efforts
over the past 19 years, we have helped our clients recover more than $350
million in verdicts and settlements, and we are committed to using the
extensive experience and knowledge of how the legal system works to help
each new client get back on their feet and move forwards.
Send us your information through our online form to start out with a free case evaluation today, or call us at one of our
office locations to discuss your situation with a member of our firm.