Whether you are a first time investor or a seasoned veteran, you’ll be glad to know that there are plenty of resources available to help you protect yourself from bonds fraud. The following walkthrough will provide you with some of the key tips and techniques that you can use to identify and prevent bonds scams.
Scams are based on historical bonds
Despite the fact that historical bonds are no longer valuable as securities, scams are based on them. Scammers claim to be backed by the United Nations, the Federal Reserve Bank, or some other organization, which they may or may not be. In reality, there is no financial benefit to owning one of these esoteric securities. These frauds are nothing more than scam artists using a valid CUSIP (Committee on Uniform Securities Identification Procedures) number to convince savvy investors that they are purchasing something reputable.
Scams are also based on railroad bonds. These fraudulent issuances have surfaced for companies including the Houston and Henderson Railroad, the Galveston, Houston and Galveston, the Richmond Railroad Company, and the York River Railroad Company. The truth is, however, that none of these companies ever issued these bonds. The reason for this is simple. These bogus securities were created to perpetuate a plethora of other frauds.
Scams are also based upon mining bonds. These fraudulent issuances claim to be backed by the World Bank or the IMF. Unfortunately, they are no different from their predecessors.
While this is not the first time these fraudulent issuances have surfaced, they have done so in a big way. Scam artists have even devised a high-yield investment trading program based on these fraudulent issuances.
They claim to be backed by the Federal Reserve Board, the World Bank, or other prestigious organizations
Regulatory bodies regulate the financial industry, but understanding how they work is often confusing. Luckily, there are steps you can take to avoid becoming a victim of a fraudulent investment scheme. A fraudulent investment scheme is one that misrepresents itself as affiliated with a reputable organization.
One of the most commonly used scams is known as a Nigerian scam. These schemes use an official looking letterhead and signature to make their correspondence seem legitimate. In addition, the scammers ask for personal information and advance fees. They may also ask for money transfers, payment requests, or personal bank accounts. While these solicitations have originated in Nigeria, they are also prevalent in countries such as Sierra Leone and Cote d’Ivoire.
Several other schemes make use of the official looking name of the World Bank Group, although only a small percentage of the solicitations make this claim. Other fraudulent schemes also make use of official-looking names of World Bank staff members to make their correspondence appear legitimate. Several leading European banks have denied participation in such programs.
If you receive a solicitation that claims to be affiliated with the World Bank Group or the Federal Reserve Board, you should beware. While these organizations are reputable and a few legitimate schemes are out there, there are plenty of fraudulent investment schemes that do not have any connection to them.
Report a bond scam
Investing in bonds may be a lucrative choice, but if you are not careful, you could be a victim of a bond scam. This type of fraud targets groups of people based on common characteristics. The victims pretend to be members of the group and hope to win their trust by offering high returns on investments. These schemes are often a way for scam artists to gain access to personal and bank account information.
There are many ways to detect fraud and scams. The first step is to contact your local police department. If you suspect you have been scammed, report the incident to the Federal Trade Commission (FTC). The FTC can provide information and data that law enforcement can use to stop the fraud. They can also share information with other law enforcement agencies.
Another way to detect a scam is to search online for information about the company that you are considering investing in. If you find out that the company is not registered with the Securities and Exchange Commission (SEC), or has not been regulated by the Federal Reserve or other government agencies, you may want to avoid them. Also, check the company’s contact information to make sure that the company is legitimate.