Find out how to report a scam
against fraudulent investment opportunities and help put a stop to one of the
biggest online scams. Learning how to report an investment scam to proper
authorities increases the possibility of stopping the investment scam faster.
The faster you can communicate a scam to authorities, the faster they can act
to find the offender and prevent the number of victims from mounting.
In order to report a scam, you must
first learn to recognize the indicators of an investment scam. To give you an
idea how to identify a scam investment, here are some commonly used investment
scam model:
●
Guaranteed High Profit Investment – this type of
investment scam is commonly used by scammers to lure people who are looking
into get rich overnight solutions. Scammers offer a guaranteed above market
standard profits to convince you to invest. However, an experienced investor
knows that there are no guarantees on investment. The same way that there is no
guarantee that you’ll earn a high profit. Profits and outcome of an investment
may be projected through historical data, but these are just projections and
are not definite outcome. Victims caught in this scam are left with nothing,
but false promises.
●
Ponzi Schemes - this type of investment scam
uses the pyramid model, which has been branded as an illegal means of
investment. The scam works by paying pioneer investors with investments from
new recruit investors. The new recruit investors will only earn profits when a
new set of investors place their investment. This cycle is designed to continue
until finally there is no one to recruit, leaving new recruits to suffer the
losses.
●
Affinity Scam – this investment scam capitalizes
on your affinity to earn your trust and convince you to invest. Scammers who
use this form of scam targets religious groups and ethnic communities. Using
the communities as a platform, scammers easily lure their unsuspecting victims
to believe in their false investment schemes. Once they have the victims’ money,
they’ll stop showing up at community meetings and become untraceable.
These investment
scams are the most commonly used format.
Now that you are already have an idea how investment scams work, you can finally identify and report a scam investment once you spot one.
Report a Scam against Investment Scammers
Get a timely and
appropriate action when you report a scam investment by using the tips provided
below:
● Report a scam investment at the SEC or
Securities Exchange Commission. The SEC provides an easy to use online
complaint form that allows you to conveniently report an investment scam. The
form enables victims and concern citizens to provide details about how the scam
happened or how the scam works. You may also send copies of the messages sent
out by the scammer through enforcement@sec.gov. Be sure to provide your contact
details so that the SEC can contact you for follow up regarding your concern.
● The FTC
or Federal Trade Commission is also offering complaint platform for
those who want to report a scam investment. Just go to this link https://www.ftccomplaintassistant.gov
and you shall be guided accordingly.
● You may also report a scam investment that was
transacted online through Federal Bureau of Investigation’s IC3 or Internet
Crime Complaint Center. IC3 also offers an online form where you can detail how
you were scammed. Your report will then be forwarded to appropriate government
authorities who have the ability to investigate and stop the scam.
The agencies mentioned above are
just some of the primary institutions that can help properly address your
concern regarding investment scam. The sooner you report a scam to the
authorities the higher the chance that they can catch the culprit or inform the
public not to fall for these malicious investment schemes.
