Common Investment Schemes

In order to avoid investment fraud, you need to familiarize yourself with the tactics and schemes fraudsters use to take investors' money. Check out this list of common investment schemes to get to know the warning signs and understand how fraudsters work.

Boiler Room & Recovery Room Scams 

When a person unexpectedly calls you and tries to get you to buy shares in a company, they could be calling from a boiler room. Learn more

Forex Scams 

If someone offers to trade foreign currencies for you or suggests a forex trading scheme that will make you loads of money, it could be a scam. Learn more

High-Yield Investment Programs (HYIPs)

Websites offering daily interest rates that are many times better than what you get in a bank savings account could be promoting an HYIP scam. Learn more

Offshore Investments 

Scam artists move investors’ money offshore in order to avoid the scrutiny of enforcement agencies and escape possible civil lawsuits. Learn more

Ponzi Schemes

Ponzi schemes are disguised by complicated investment strategies or fictitious investment products that promise to make you rich. Learn more

Prime Bank 

Promises of inclusion in a secret, offshore bank trading system is a sign that someone is probably running a prime bank investment scheme. Learn more

Promissory Notes 

A promise that a small, unproven company will pay higher-than-average interest may be a promissory note scheme. Learn more

Pump & Dump 

A ‘pump and dump’ is a stock promotion designed specifically to take money from unsuspecting investors. Learn more

'Unlocking' Retirement Savings Schemes

These schemes often target debt-burdened individuals who feel they need immediate access to their retirement savings. Learn more