5: Investment Schemes Designed to Separate You from Your Money
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Published:2020
H. Kent Baker, John R. Nofsinger, Vesa Puttonen, 2020. "Investment Schemes Designed to Separate You from Your Money", The Savvy Investor's Guide to Avoiding Pitfalls, Frauds, and Scams, H. Kent Baker, John R. Nofsinger, Vesa Puttonen
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Every day someone makes a big mistake by giving money to a fraudster. Many times, these swindlers remain off the radar for months or even years because investors don’t discover that they’ve been scammed. But one day they discover that their money is gone. Investment fraud refers to a wide range of deceptive practices including untrue information or fictitious opportunities. Many think that rational investors wouldn’t invest in these “too good to be true” cases but they’re wrong. Of course, nobody intentionally puts money into a rip-off, but fraudsters are good at their craft. Regular, hard-working people often invest large sums of money into “only-for-you” schemes and lose their life savings. Some even unwittingly bring their family members and friends into the scam.
