Investment Scam

Fraudsters claim to be a financial adviser or portfolio manager and offers investments scheme with high returns and little

risk to investors.

Type of Investment Scam:

• Pyramid Scam - Fraudsters promise high rate of return with small investment within a short time period. In fact, investors make money by getting new members joining the program.
• Ponzi Scam - Fraudsters collect fund from new investors and use it to pay earlier-stage investors. Unlike pyramid scam, investors do not need to recruit new members in order to get the profit.
• Advance Fee Fraud - Fraudsters promise investors a large sum of money, stock, or warrants in return for a small up-front payment.
• Forex Scam - A trading scheme used to defraud investors by promising them a high profit by trading in foreign exchange market.
• Offshore Investment Scam - Fraudsters lure investors to move money out of the country. The company that you send your money to could be a shell company used to commit fraud. Once the money is moved to the offshore company, fraudsters will deposit it somewhere else.
• HK Property Investment Scam - Fraudster / scammer approched potential investor for an opportunity to invest in HK property market using fake BOC Bank document and request for deposit to be paid in advance.

How to spot investment scam?

• High return within a short time period.
• Low risk and guaranteed return.
• Pressure you to invest right away or on the spot.
• Investment that could not be verified through information that is available in the public domain or relevant authority.
• Recommendation of foreign or offshore investment from unfamiliar person.  

How to avoid investment scam?

• Verify the investment is registered.
• Beware of promises of high rates of return and/or quick profits.
• Be Suspicious of high-pressure sales.
• Beware of unsolicited offers.
• Talk to a third-party person.