There are different kinds of Investment Bonds scams. Some are imposters that target those who lost money in their previous investment. These imposters will often ask for a “refundable” fee or deposit to invest with them. They may also ask for additional funds to cover taxes and other fees. The scammer may have a fictitious business name or an office address that looks legitimate.
Advance fee scam
An advance fee scam in investment bonds occurs when you agree to pay an intermediary an advance fee to invest your money. The goal of the fraudster is to obtain your personal and financial information. They may use fake company websites, social media posts, or emails to trick you into handing over your money. The most common example of this type of scam involves investment schemes targeted at older people, such as retirees. These people are usually on fixed incomes and are attracted to investment schemes that promise to make them rich quickly.
In this type of scam, the scammer contacts you and offers to invest your money with him. He may require an “advance fee,” “deposit,” taxes, or even more money. Usually, the investor loses some or all of their money. The scammer may use a professional-looking website, toll-free phone number, or a respectable address.
Although most of these schemes target foreign investors, they can affect domestic investors as well. Look for the following red flags: “high-pressure sales tactics,” “promises that are too good to be true,” and “fake websites.” Whenever you receive an unsolicited call for an investment, hang up. You should also research the investment thoroughly and perform a broker check. This is how you avoid becoming the victim of a scam.
The SEC’s Office of Investor Education and Advocacy has published an Investor Alert warning investors about this scam. The scammers may appear to be affiliated with the U.S. Treasury, but in reality, they are not. Instead, they are posing as a legitimate financial institution. As a result, they may have access to your private information.
Historical railroad bond
If you’re interested in investing in historical railroad bonds, you should be aware of a common scam. The dealers who sell these bonds are known to be deceitful and will lie to you to get your money. The truth is that these bonds have no collectible value and can be worthless. The bonds are sold to people for large amounts of money, so you must be wary of these deals.
Many investors were duped into buying bonds by con artists. These fraudulent deals included Chicago, Saginaw and Canada Railroad Company bonds. They were also sold as Mexican government bonds and Chinese war bonds. Sadly, these bonds were not worth the money investors lost. Several federal agencies are investigating the scam, which led to a $10 million loss for investors.
The United States Department of Treasury has identified this scam as a form of historical railroad bond fraud. While historical railroad bonds once held great value as securities, their value has decreased. While they may be interesting to collectors, they are worthless as securities. Scammers are exploiting this lack of value by selling these bonds at face value, and buyers should be cautious.
In addition to being worthless, historical railroad bonds do not redeem for gold. In fact, most of them are worthless, with only a few hundred dollars being worth the risk of losing all their money. Because gold clauses in railroad bonds were not enforced until 1977, they are not upheld in U.S. courts. In fact, the Supreme Court has even declared that these bonds cannot be sold or redeemed in gold.
High yield investment program
High yield investment program scams are a common problem, especially in the current financial climate. The organizers of these programs use fabricated “prime banks” to lure investors with promises of guaranteed high returns. They also make it seem as if these programs are for sophisticated and wealthy investors. Unfortunately, the truth is much different.
The con artists behind high yield investment programs are particularly adept at using social media to lure new investors. These sites create the appearance of a “social consensus” which allows investors to believe that the program is legitimate. But in reality, the scammers use this illusion to trick you into investing. They also manipulate the public’s perception, and often use reverse psychology to entice investors to sign up with the program.
Unfortunately, most HYIPs are simply fraudulent schemes. The promoters use payments from today’s recruits to pay interest to yesterday’s investors, while also paying referral fees to recruiters. This practice is a growing concern in the financial world, and the Federal Bureau of Investigation reports a rise in HYIP investigations. As such, HYIP scams should be avoided at all costs.
A high yield investment program scam is an unregistered investment vehicle that claims to provide extremely high returns. These programs are operated by unlicensed individuals and are likely to steal your money. In many cases, high yield investment programs are also called “prime bank” scams, as the scammers use the money of new investors to pay old investors.