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Investment Fraud FAQs

  1. What are some of the characteristics of investment fraud?
  2. What are different types of investment frauds?

1. What are some of the characteristics of investment fraud?

Some characteristics of investment fraud include:

  • The use of high-pressured sales tactics,
    Some swindlers may result to insulting or arguing with you if they sense you will not be an "easy-sell," shifting to a "hard-sell" approach.
  • A request for credit card information other than to make a purchase,
    Be careful about providing personal and credit card information for "identification" purposes. Unwanted charges may appear on your credit card bill without your knowledge.
  • An offer that sounds too good to be true, and
    Be wary of investment schemes that promise significant returns. As the age-old saying goes, "If it is too good to be true, then it probably is."
  • A "demand" for an immediate decision.
    Fraudsters are very persuasive and always have an answer that may sound reasonable to you. Never let a swindler pressure you to make a hasty decision.

For more in-depth information about the characteristics of investment fraud read NFA's brochure, Scams and Swindles: An Educational Guide to Avoiding Investment Fraud.

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What are some of the characteristics of investment fraud?

2. What are different types of investment frauds?

Here is a list of some common types of frauds that investors should be aware of:
  • Ponzi schemes or pyramid schemes
  • Internet stock tips
  • Seasonal trading in gas and oil
  • Affinity fraud

For more information about these different types of investment fraud read NFA's brochure, Scams and Swindles: An Educational Guide to Avoiding Investment Fraud. 

For a detailed list of specific industry related frauds, such as foreign currency (forex), weather-related and precious metals scams, visit the CFTC's fraud advisories list.

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What are different types of investment frauds?
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