Investment or business fraud schemes will try to lure you in with the promise of low- or no-risk investments. Scammers often ask for upfront cash in exchange for guaranteed future returns. There is no such thing as a guaranteed return on investment. It’s a scam. Learn what to look out for, how to protect yourself and your family, and what to do if you’re a victim.
Common Schemes
- Advance fee schemes ask you to invest upfront money for a larger return later, such as a loan, contract, or gift.
- Nigerian Letter or 419 schemes ask someone to share in a percentage of millions of dollars that the author—a self-proclaimed government official—is trying to transfer illegally out of Nigeria.
- Ponzi schemes use current investors’ money to pay previous investors. They inevitably collapse.
- Pyramid schemes ask you to bring in new investors to make a profit or recoup your investment.
- Telemarketing fraud schemes try to steal your money over the phone, whether by telling you won a prize, are in legal trouble, or some other approach.