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.