Investment Scams: Conclusion
  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: Conclusion


Now that you're familiar with the various kinds of online investment scams, we hope you'll be prepared for anything the fraudsters throw at you. We'll be happy if this tutorial saves one person from being scammed out of their hard-earned money.

To recap:
  • Many scams on the 'Net aren't new at all. They're just variations on classic Ponzi schemes, pump and dump scams, and offshore investing scams.
  • Bulletin boards are especially dangerous because you don't know the identity of who is posting. Take all posts with a grain of salt.
  • Newsletters are often written by paid promoters. Always be skeptical: if things sound too good to be true, they probably are.
  • Spam isn't even worth the second it takes to hit delete.
  • If you encounter a scam, contact the SEC.



  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. Affinity Fraud

    A type of investment scam in which a con artist targets members ...
  5. Unauthorized Insurance

    A phony plan that claims to provide financial protection against ...
  6. Pyramid Scheme

    An illegal investment scam based on a hierarchical setup. New ...
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 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 >>
  3. What is the doctor advisory scam?

    U.S. securities law provides certain exemptions that allow privately owned companies to issue shares of unregistered stock ... Read Answer >>
  4. Is teaming up with other traders to raise the price of low cap/penny stocks illegal?

  5. Where can I buy penny stocks?

    Discover basic information an investor needs on trading penny stocks, including where penny stocks are traded and the risks ... Read Answer >>
  6. How can we know if we’ve been scammed with an investment?

    My partner bought a product from a friend who is an alleged financial adviser. We pay $125 per month. Of this amount about ... Read Answer >>
Hot Definitions
  1. 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 ...
  2. White Squire

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

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. 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, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center