Affinity Schemes
State securities regulators are warning investors to be on guard against a rise in affinity group fraud. What is affinity fraud? It`s simple, but the causes that give rise to it are often more complex......
Protecting Online Brokerage Accounts
Let's hope this never happens to you: You have a few free minutes so you decide to go online to check your brokerage account information. Your account balance is much lower than you expect - and you know that, at least for today, neither the market nor any of your securities fell in value. You see that there were several wire transfers of money from your account to an outside checking account. But you never authorized those transactions - instead, an identity thief did, and that thief has now stolen your cash as well as your personal information....
Blind Pool
During prosperous times, potential investors tend to become less cautious in considering investment alternatives, a course of action that can have disastrous results. One type of investment instrument that lures unwary investors is the "blind pool" offering. Blind pools are investment vehicles that raise capital by selling securities to the public without telling investors what the specific use of the proceeds will be.....
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Investment Swindles
Following is Investment Swindles: How They Work and How to Avoid.....
Phantom Regulators
WASHINGTON, D.C. – Want to check out a hot stock tip before you invest? Make sure you aren’t getting bad advice from con artists posing as regulators, warns Franklin L. Widmann, Chief of the New Jersey Securities Bureau, and President of the North American Securities Administrators Association (NASAA).......
Pyramids
Multilevel or "network" marketing plans are a way of selling goods or services through distributors. These plans typically promise that if you sign up as a distributor, you'll receive commissions - for your sales and those of the people you recruit to become distributors. These recruits sometimes are referred to as your "downline.".....
"Phishing"
"Phishing" and Other Online Identity Theft Scams: Don't Take the Bait The Internet has revolutionized the way that many individuals manage their finances, and interact with financial service providers. With the click of a mouse, you can view account information, pay bills, research investments, and buy and sell securities. Unfortunately, "identity thieves" also can exploit the Internet. Through a variety of scams, wrongdoers have managed to steal usernames and passwords, obtain sensitive personal and financial information, and sell risky securities to unsuspecting customers........
