– Total loss in 2020: $336,469,000
– Total victims in 2020: 8,788
The illegal or purported sale of financial instruments is considered investment fraud, according to the FBI. Ponzi schemes, pyramid schemes, advance fee schemes, and market manipulation are all types of investment fraud. Scammers often target elderly people—particularly older men who take risks—because they tend to have pensions and other retirement plans, according to a research study by AARP. Affinity fraud is another type of investment scam that targets members of specific groups like ethnic or religious communities.
To protect yourself and your investments, do your research and only work with companies and professionals that are legitimate. When dealing with countries outside of the one you live in, be cautious, make sure to understand terms and conditions, and do not be afraid to ask questions.
