One of the most common scams in the investment industry is the bond sales pitch. These schemes are essentially fake sites that pretend to sell you shares in a company, but they are actually fake. They may ask you to pay money up front and then pressure you into investing. Then, they may direct you to deposit your money in a bogus account. Recovery can be very difficult, or your money may be permanently lost.
Scams usually target the highest yielding investment bonds. These are the most risky investments, and the SEC is concerned about the growth of these schemes. In fact, the Commission has stepped in to fight these schemes and has helped many investors recover a large portion of their money. This means that it is important to be wary of any unscrupulous company that claims to be a licensed broker or investment adviser.
To prevent falling victim to a bond investment scam, be aware of the following warning signs. Scammers often pose as a reputable financial services provider. They will send out professional-looking prospectuses and even gather your contact details from fake investment comparison sites. They will then ask you to deposit money into their bank account. This is a huge risk, and you may end up losing all your money. Alternatively, the company may have a branch in an offshore jurisdiction and you are not protected by the FSCS.