SCAMS BULLTIN Host Jay White is an inactive attorney in San Mateo County, California.

December 28, 2020

INVESTMENT COACHING SCAMS 

Courtesy US Federal Trade Commission

Investment scams lure you in with promises of teaching you how to make a lot of money quickly, easily, and with low risk — usually by investing in the financial or real estate markets. If your respond to the promises, scammers later will charge you a hefty fee for their “proven” investment tricks.

Scammers get your attention with infomercials or online ads, encouraging you to attend free events or to watch free introductory videos. But later you find out that you must pay a hefty fee to get the coaching they promise. They’ll show you phony success stories of people who have used their coaching program. But you have no way of confirming that their stories are true.

In an investment coaching scam, the scammer will tell you that their “patented,” “tested,” or “proven” strategy (or something similar) will teach you how to make money investing in stocks, bonds, foreign currency, or tax liens. They promise that their investment approach will set you up for life — and even let you stop working. They sometimes starting by offering a free seminar and lunch in which you will be given a misleading sales pitch.

What to know

The truth is that the promoters of investment coaching scams exaggerate the money you can make with their system. They also fail to give you the step-by-step guide they as promised. They lie about other people’s success. It’s all part of a marketing scheme to get you to pay many dollars for what turns out to be empty promises.

What to watch for

*The promotional materials and sales pitches used for real estate investment seminars often make over-the-top claims.

*Scammers say you can earn big money fast, regardless of your experience or training. But that’s not true.

*Scammers promise their deal is a “sure thing” that will give you security for years to come. It won’t.

*Scammers say you’ll rake in money by working part-time or at home. But most people don’t.

*Scammers promise you’ll be coached to success each step of the way. But there’s often little coaching, and no success.

*Scammers claim the program worked for other participants — including the organizers. And it might have, for a few people, but most people never make their investment back.

Don’t be convinced by ads with success stories of people saying how much money they made with little time, effort, and risk. Or ads that feature celebrities praising the program. Those kinds of claims aren’t reliable and don’t mean the program works. Investment scams often use fake testimonials and pay people to endorse their programs.

Where to Report Investment Scams:

If you suspect an investment scam, report it to the Federal Trade Commission at ReportFraud.ftc.gov.

Report possible securities fraud to the Securities and Exchange Commission online. For tips on investing wisely and avoiding fraud, visit the SEC’s website for individual investors, Investor.gov.

If your personal information has been misused in an investment scam, visit IdentityTheft.gov for steps you can take to deal with problems that may arise.

ATTRIBUTION: http://www.ftc.gov