A study by the Better Business Bureau shows the number of complaints about bogus investment schemes has overtaken complaints about online shopping scams.
Bureau spokeswoman Lisa Schiller says these financial con artists have done their psychological homework and know how to push people’s buttons.
“They prey on the desire, really, to make money without much risk or initial funding,” Schiller says. “They’re really very complex cons, and they can take you for large sums of money.”
Schiller says anyone trying to offer you a fantastic chance to get in on a new business venture or a “sure thing” for your portfolio is likely trying to rip you off, even if it seems legit.
“You may even receive regular reports that the project is producing great returns on your money,” she says, “but then when you try to withdraw the money, that’s when it turns out that the investment never existed.”
Unlike the online shopping scams, Schiller says an increasing number of investment scams are being carried out in person.
“A lot of risky investments are sold at opportunity meetings, breakfast meetings, high pressure situations,” Schiller says, “You might even be invited to something or have a shared connection, like with your church or your profession.”
Examples of scams include new cryptocurrencies, business loans or startups, or foreign currency. As always, Schiller says to do your research before writing anyone a check, and if it sounds too good to be true, it probably is. Also, if someone is demanding money right away, or won’t let you think about the investment, walk away.