Investment Fraud

By Seyvon Jones

What is Investment Fraud?

• Investment fraud is any scheme or deception relating to investments that affect a person or company

Examples of Investment Fraud

• Illegal Insider Trading– The trading of a public company's stock or other securities

by individuals with access to non-public information about the company.

• Fraudulent Manipulation of the Stock Market – making false or misleading statements and completing

transactions that have the purpose of giving a false impression about supply or demand

• Prime Bank investment Schemes– often claim investors' funds will be used to buy and trade

"Prime Bank" instruments

How to protect yourself from investment fraud

• Ask questions• Research before you invest• Know the salesperson• Be wary of unsolicited offers• Protect yourself online• Know what to look for

Relevant statistics

• Despite tougher laws, investigators report Americans are losing as much as $40 billion a year to investment fraud.

• The Federal Trade Commission estimates that 30.2 million people are defrauded each year, losing a total of close to $3 billion.

Frequently Asked Questions

• What are some of the characteristics of investment fraud?

• What are different types of investment frauds

links

• http://www.spamlaws.com/investment-fraud.html

• http://investor.gov/investing-basics/avoiding-fraud/types-fraud/prime-bank-investments