6-Unlicensed individuals such as independent insurance agents selling securities
From Washington state to Florida scam artists use high commissions to entice independent insurance agents into selling investments they make know little about. The person running the scam instructs the unlicensed sales force to promise high returns with little or no risk.
7-Prime Bank schemes. Con artists promise investors triple digit returns through aces to the investment portfolios of the world elite banks. Perpetrators of these schemes often target conspiracy theorist promising acess to the secret investments used by the Rothschilds or Saudi royalty. In a effort to warn investors the Federal Reserve pointed out that these don’t exist. But unfortunately that government denouncement just feeds into the conspiracy MINDEST LINKED TO THIS SCAM.
8-Internet fraud. According to the NASAA, Internet fraud has become a booming business Recently, federal state local and foreign law enforcement official targeted Internet fraudsters during Operation Cyber Sweep. They identified more than 125,000 victims with estimated losses of more than $100 million and made 125 arrests. “The Internet has made it simple for a con artists to reach millions of potential victims t minimal cost Many of the online scams regulators see today are merely new versions of schemes that have been fleecing offline investors of year.
9-Mutual fund business practices. Recent mutual find scandals have made the national news and attracted the attention of investors and launched several investigations.
10-Variable annuities. As sales of variable have risen so have complaints form investors most notably the omission of disclosure about costly surrender charges and steep sales commissions. According to the NASAA, variable annuities are often pitched to seniors through investment seminars but regulators say these products are unsuitable for many retirees.
11-As an example of how consumer frauds can occur consider Brian, a hard working college student who was victimized by an investment scam.