Whether you’re just starting out with bonds investments or you’re a seasoned investor, there are certain common scams you should be aware of. In this Bonds Investment Scams review, we’ll go over what to look out for and how to avoid them.
Avoiding common Bonds investment scams
Identifying common Bonds investment scams can help prevent you from losing your hard earned cash. Some of the more common scams include the imposter bond investment scam, the prime bond scam, and the all or nothing investment scheme.
The imposter bond scam involves a scammer pretending to be a real financial company. The scammer will then try to lure you into making an investment. This may involve asking you to download software or give them your bank account information. They will then use your information to make fraudulent payments and to set up fake accounts on investment trading platforms.
The prime bond scam is a bit more complicated. This type of fraud involves overseas markets and is best avoided if possible.
The all or nothing investment scheme is also a scam, and may involve identity theft. If you lose money, report the scam to your financial institution.
High yield investment scams
HYIP schemes, or high yield investment programs, promise returns of 30% to 40% a day, sometimes more. They are like pyramid schemes that use new investors’ funds to pay old investors. HYIP schemes are often found online.
The high return is the main selling point for these fraudulent business opportunities. Con artists are aware that many Americans want to own a business. They use the promise of owning a business to lure unsuspecting consumers into investing.
Scam artists also use spam to target potential victims. These e-mails often contain misleading information. If you receive such a message, ignore it. If you have questions about the legitimacy of an investment opportunity, contact the Securities and Exchange Commission (SEC).
HYIP schemes are similar to pyramid schemes, in that they promise high returns with little effort. But unlike a pyramid, they usually offer no specific information about the company.
Imposter bond scams
Investing in bonds is an attractive proposition because they offer a steady source of income. However, investors should be careful when presented with investment opportunities. Scammers are targeting Australians with fraudulent offers of bonds and other financial products.
Imposter bond scams target Australians by impersonating real financial institutions and companies. The scammers use fraudulent websites to lure people into investing in bonds. They claim to offer fixed-term deposits and government bonds.
In order to make the sale, scammers will ask for your contact details. They will often use phone spoofing technology, which makes it look like a legitimate law enforcement agency is calling. You will also be urged to transfer money into a bank account.
The Australian Competition and Consumer Commission reported nearly A$1.8 billion in losses from imposter bond scams in 2021. This figure increased to nearly A$2 billion in the first half of 2022.
Debt guarantee scams
Having a lot of debt can lead you to be tempted to sign up for debt management programs. But be careful. Some companies are genuinely legitimate, while others will scam you out of your money. There are ways to spot these types of scams.
The first thing you can do is to look online for reviews. You can go to the Better Business Bureau to see how many complaints have been filed against a business. Another tip is to plug the lender’s address into Google Maps. If the address is not listed, it is a clear warning sign.
If you receive an email that looks suspicious, mark it as spam. Most of these emails ask for your personal information and include multiple grammar errors. This is a sign that the email was probably phishing.
Targeting people from the age of 55
Despite the fact that millions of Americans are targets of telemarketing fraud, internet scams, and other financial scams, older victims are often overlooked as potential victims of financial fraud. Older victims face an array of negative effects including psychological distress, loss of independence, and loss of assets accumulated over a lifetime. Increasing awareness of these scams and avoiding being targeted can help prevent future victims. If you become a victim, reporting scams can help you recoup losses and prevent others from being a victim.
A study aimed to determine whether the cognitive, emotional, and social factors that contribute to financial victimization were associated with the occurrence of scams in 639 community-dwelling older adults without dementia. The 639 participants were surveyed using a decision-making assessment. The survey gathered information about each participant’s age, gender, educational level, income, social support, physical functioning, and functional status. The survey also asked participants to identify the types of scams they were most likely to be victims of. Using an analytic technique, models were created to analyze the interactions between the variables in the survey.