Online Investment Scams Tutorial
  1. Investment Scams: Introduction
  2. Investment Scams: Different Types Of Scams
  3. Investment Scams: Bulletin Boards
  4. Investment Scams: Newsletters
  5. Investment Scams: Dealing With Investment Fraud
  6. Investment Scams: Conclusion

Investment Scams: Introduction


Ever find a scam like this in your e-mail? We sure get enough of them in the Investopedia Inbox.

To: investor@worldwideweb.com
Subject: This is your lucky day!!!

I don't usually send out stuff like this, but what I have to tell you is just too good. For the last six months I've been developing the ULTIMATE TRADING PROGRAM. I've figured out exactly how to pick the next Microsoft. In fact, over the last year I've had a 3,000% return on my investment!!!

In my investing program there is absolutely NO RISK. In fact, it's such a SURE THING that we'll guarantee you cannot lose your investment. Thing is, if you want a part of the action, you'll have to send me $499.95 today. There are just too many other investors who want to get in on this...

The Internet is a great tool for investors, allowing us to research investments and trade securities with unprecedented ease. Unfortunately, the lack of rules on the 'Net also makes it a perfect place for fraud to flourish.

In this tutorial, we look at the ins and outs of Internet investment fraud. We examine different scams, see how they are carried out, and discuss how to avoid them.

Investment Scams: Different Types Of Scams

  1. Investment Scams: Introduction
  2. Investment Scams: Different Types Of Scams
  3. Investment Scams: Bulletin Boards
  4. Investment Scams: Newsletters
  5. Investment Scams: Dealing With Investment Fraud
  6. Investment Scams: Conclusion
Related Tutorials
  1. No results found.
RELATED TERMS
  1. Reloaded

    A slang term meaning that a consumer who was previously defrauded ...
  2. Nigerian Scam

    A scam where the sender requests help in facilitating the transfer ...
  3. Cross-Firing Scam

    A type of scam in which a business transfers money between its ...
  4. High-Yield Investment Program - HYIP

    A fraudulent investment scheme that purports to deliver extraordinarily ...
  5. Major Fraud Act Of 1988

    A piece of legislation passed during the Reagan administration ...
  6. Association Of Certified Fraud Examiners

    An organization that was created to combat fraud and deception ...
RELATED FAQS
  1. How does a pump and dump scam work?

    A pump and dump scam is the illegal act of an investor or group of investors promoting a stock they hold and selling once ... Read Answer >>
  2. What are the top Social Security scams targeted at the elderly?

    Prevent Social Security scams by learning to recognize the most common types of scams that target senior citizens receiving ... Read Answer >>
  3. What are the warning signs of online hotel / travel booking scams?

    Learn more about travel booking scams and how to avoid them. Explore warning signs of possible booking scams, and find out ... Read Answer >>
  4. What are the most common scams regarding Social Security benefits?

    Learn about some of the most common Social Security scams that occur by phone, email and direct mail, and how to recognize ... Read Answer >>
  5. Should I accept the indexed universal life insurance being offered to me?

    I'm being offered an Indexed Universal Life (IUL) insurance policy through Transamerica. I don't trust the company, ... Read Answer >>
  6. What should I do with the $70K sitting in my savings account? Invest it in stocks, ...

    I would say I am both a conservative and a risky investor. On the one hand, I don't want to lose my money and therefore ... Read Answer >>
Hot Definitions
  1. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  2. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  3. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  4. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  5. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  6. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
Trading Center