This is another contribution from one of ASSI's most prolific guest bloggers, Matthew Seah:
Recently I got to know of a likely fraudulent company selling US distressed properties in a declining city. Thought I could clear some air about how fraudulent investment operations work.
After doing some quick search, I found an easy to understand video from the Financial Industry Regulatory Authority, Inc.
How to Spot Investment Fraud?
Here are some other warnings signs which I think are also easily recognisable:
Promises of high, guaranteed investment returns with little or no risk.
“If it sounds too good to be true, it probably is.” Many fraudsters claim 12 – 24% or even higher returns. Unless their names are Warren Buffett, Peter Lynch, or George Soros, most investments can’t generate 12% returns consistently. Furthermore, all investments carry some degree of risk, so a 12% guaranteed return sounds amusing to me......