According to Forbes, in the fiscal year 2023, RBI documented bank frauds exceeding Rs. 302.5 billion. Imagine how many lives must’ve been destroyed.
So, it’s important to keep ourselves up-to-date with the investment scams that are ransacking people off their hard-earned money.
Now, let’s look at the different types of investment scams:
Affinity Fraud:
Fraudsters target members of identifiable groups, such as religious or ethnic communities, language minorities, the elderly or professional groups and make attempts to trick them into investment frauds.
Ponzi Scheme:
This is the most common type of investment fraud. A Ponzi scheme fraudster takes a huge investment amount from investors and promises higher interest rates. Every month the fraudster gives the interest amount back to the investors from their original investment, and one fine day, disappears into thin air.
Pump and Dump:
This is a manipulative scheme that involves artificially inflating the price of an owned stock through false and misleading positive statements, to sell the cheaply purchased stock at a higher price.
Crypto Scam:
Cryptocurrency scams are rising, and thieves are using new and old techniques to steal money. Scammers impersonate new or established businesses offering fraudulent crypto coins or tokens.
Exempt Securities Scam:
The victim receives an unsolicited call or email offering the opportunity to invest in a company that is about to offer shares to the public.
Imposter Scam:
These scammers pretend to be bank personnel or government officials who trick you into believing something and ask for your money or personal information.
Pyramid Scheme:
This is a type of scheme where participants are promised high returns by recruiting new members. Those new members are then required to pay a joining fee and recruit more members.
