Share and Bond Scams – Investment Fraud Tactics
Overview
Investing in shares and bonds is a common way to grow wealth and protect against inflation. Unfortunately, scammers target unsuspecting investors with convincing offers, often posing as legitimate brokers or companies. These scams are sometimes run by overseas “boiler room” operators who cold-call investors with fake opportunities.
How These Scams Work
- False Promises of High Returns: Scammers claim you’ll receive huge profits or monthly payments directly to your bank account after buying shares or bonds.
- Unsolicited Contact: Victims receive phone calls, emails, or letters from unknown brokers offering “exclusive” investment opportunities.
- Online Traps: Fraudsters use online ads promising guaranteed returns, luring people into risky or fake investments.
Why This is Risky
The securities market is unpredictable. Even legitimate investments carry risks, and promises of “guaranteed” profits are a red flag. Many victims find themselves stressed, harassed, and unable to recover their money.
How to Protect Yourself
- Always research the company’s background and verify its registration with official financial authorities.
- Be suspicious of “too good to be true” offers or discounted shares with guaranteed returns.
- Document the name and contact details of anyone giving you investment advice.
- Check if the firm is listed as regulated or unregulated on government websites.
- Never rush into investments based on unsolicited calls or online ads.
Remember: legitimate investments carry risk, but fraudsters guarantee profits to lure victims. Always verify before you invest.