To increase their finances, some people try to buy company stocks or bonds that allow them to make a profit in the future. Such an investment is quite profitable but comes with many risks. One of them is the risk of purchasing securities from scammers who are very active in this area.
Financial Fraud Stocks
A known method of fraud is the theft of documentary shares, to achieve this, scammers:
- create fake documents for the transfer of these shares from one owner to another;
- present fake transfer orders with the signature and seal of the real share owner;
- indicate information in the order about transferring these documentary shares to another company ownership, which scammers create, as they say, for one day;
- after executing this order, the securities are transferred to the new owner to his account, and the scammer receives a real certificate that confirms his ownership rights to the shares.
This is how the theft is carried out, which can only be detected at a shareholders' meeting, so before these events, scammers try to sell the securities and liquidate the company involved in this fraudulent scheme.
Fake Bonds
Bonds are securities that involve obligations to the creditor to pay interest at established terms. Bonds are emission securities, which means they need to be registered at a state level; the number of issues and investors does not affect this.
Scammers often pose as specialists in bond sales, offering their services with the sole aim of enrichment at the expense of deceived people. Scammers, offering bonds for sale, may even lower the price, explaining that these bonds do not currently have a high price but will bring colossal profits in the future.
Fake Stocks
Scammers post ads on the internet on behalf of well-known companies, looking for investors or partners, creating fake securities, stocks. By putting them up for sale, scammers hope to make a decent profit before the scam is uncovered and shareholders realize they've been deceived.
Investment Scam
Investment scams are projects aimed at delaying and freezing interest or dividend payments, which violates the terms of the deal.
Well-known projects include:
- services for investing in securities, stocks, bonds;
- working in the Forex market.
These schemes are designed to deceive investors and fraudulently appropriate their funds.
An investment scam project is a blow to finances and the loss of all investments. Sometimes it is possible to recover money at an early stage, although this is an exception; in most cases, scammers get their way, take the money, and disappear from the victim's sight.
Securities Fraud
To attract investors, scammers:
- pose as employees of a company successfully trading stocks;
- specialists, knowledgeable in Forex market operations;
- claim to have a head office abroad;
- hire specialists fluent in foreign languages, conduct training to persuade potential victims to invest in fake companies;
- convince to buy their stocks, which, of course, are fake.
Stock Market Fraud
To understand which project is fraudulent in the stock market, it is necessary to pay attention to certain aspects:
- examine the work of the website, if its operation is unstable, with periodic customer activity, it is clear that this project is created for a short time, and the organizer does not care what happens;
- unexpected problems arise with paying investors their interest and dividends;
- a sharp change in the investment field occurs, promising a sharp and rapid increase in profitability;
- an active advertising program is carried out to attract new investors.
All these manipulations indicate that this company is fraudulent in the stock market.
Fake Investments
Scammers attract potential victims to risky financial projects. The victim faces partial or complete loss of invested funds from fake investment companies, necessary to:
- carefully study the advertisement promising quick and high returns;
- analyze the offers;
- assess the upcoming risks and the need to invest in the proposed projects;
- preliminarily study the market, get acquainted with the offers, choose a reliable company.
Counterfeit Stocks and Bonds
Scammers engage in counterfeiting stocks and bonds, creating effective companies, providing fake documents. They offer to invest in supposedly promising companies and become a shareholder, promising high returns in a short time.
Mainly, victims are inexperienced or novice investors who trust their finances to professionals who may turn out to be fake. Such stocks are always created hastily and do not have the appropriate signs of authenticity; an inexperienced investor cannot recognize this at first glance.