A Financial Revolution 

January 28, 2006
Top 10 Investing Scams
MSN has an article about the top 10 investment scams. Here's the short version:
  • Ponzi/pyramid schemes that promise huge returns, but only pay off the "investors" who got in early.
  • Fake promissory notes from companies or that are little known or don't exist.
  • Immoral financial managers that charge for services not provided or conduct unauthorized activities (e.g., frequently trading without permission.)
  • Con artists scamming people with similar interests/backgrounds (e.g., non existent "gifting" programs for a church.)
  • Unlicensed agents selling products/investments that promise high returns with little risk (and pay very high commissions.)
  • "Prime bank" schemes that promise to let you invest in the same secret investments of the ultra rich.
  • Internet fraud such as phishing scams where a web site that looks legitimate is really a front for a thief. Another is the Nigerian 419 scam. If you've ever received an email asking you to help someone move their money to a US bank account for which you will receive a nice multi-million dollar commission, you've seen the Nigerian 419 scam.
  • Mutual fund improprieties.
  • Variable annuities with big surrender charges (cash out fees) and high commissions.

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