Showing posts with label investment scams. Show all posts
Showing posts with label investment scams. Show all posts
Friday, August 23, 2013
Investigators Urge Caution with Investments Scams













Thousands of people around the world have been victims of investment scams. Such scams can target individuals on up to corporations and the losses at the global level, annually, are staggering. An Australian fraud authority recently reported that in 2012 the losses related to this kind of reported fraud were close to $93 million dollars for individuals in Australia alone. Investigators say that only 5%, approximately, ever report the crime. And this number doesn't include companies and corporations, and this is the figure is just for Australia. When combining other countries such as the U.K., Canada and the U.S., and adding company losses, the numbers quickly get into the billions. The statistics are only the tip of the iceberg when it comes to scam activity.

Certain types of commodities, like oil and gold, have been used as easy bait by criminals conducting fraud. However, there is a wide range of approaches that a criminal will try to sell you; from coal to properties, to stock options, to cheap suppliers. Regardless of the offer the promise, if it looks too good to be true, then it probably is. With internet criminals quickly learning the most effective methods, being skeptical alone is no longer enough.

Investment scams succeed because it looks like the real deal, the one we are supposed to get just once in our lifetime. Or, it is the perfect solution to you or your business at the right time. For international deals, it is often impossible to verify the real opportunity from the con artist or false company unless you have an investigator on the ground in that foreign country to verify the company, management, legal filings, reputation, and offices and facilities. Evidence from a background check investigation can be a valuable tool in lowering your risk.

International investigators in London and New York are reporting a significant increase in scam cases involving false companies, fake stocks, fraudulent websites, and other investment scams. The threat is increasingly coming from countries like China, Malaysia, the Philippines and Russia, although investigators urge caution and say that no country is immune from fraud.

The goal of the scammer is always financial gain, but experts say be skeptical and remember the criminal doesn't have to ask for money to steal your personal data, money or even identity. There are many ways that criminals reach their objective. According to the numbers on Statistic Brain, identity theft victims in the U.S. alone total almost 12 million victims per year!

In other fraud cases, companies or individuals may send an initial payment or investment to a company or individual in Asia, and the money will never be seen again. The Internet is a great tool for investing but is also a perfect place for fraud to flourish. Be safe and verify.

A. Hathaway
© 2013 A. Hathaway

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Monday, January 17, 2011
Due Diligence in China Strongly Advised

Investigators Say High Fraud and Scam Risk in China













China is booming in just about everything these days. Overpopulation, economy and... scams and fraud. Private investigators with operations in Beijing and Hong Kong warn that scam and fraud is up sharply compared to just two years ago, and new investments or business relationships in China should be analyzed and reviewed carefully. International due diligence is strongly advised for new business relationships in China. Investigators say fraud can come in any form, such as a person claiming to be new supplier or vendor, to claimed consultant agencies and investments. China's growth has attracted a great influx of capital and investments, and businesses and individuals are too often investing without doing their homework.

According to one Hong Kong private investigation firm, investment scams are a rising problem, but investigators are also seeing new types of scam cases which were previously not seen in China and Hong Kong. Romance scams and online dating scams are now operating from China, and although they are still at relatively low levels, private investigators say action is needed from Chinese and Hong Kong government agencies to prevent the problem from growing. International private investigators also report increased demand for China background checks and China due diligence in response to the growing risk for fraud and scam cases. Contacts via the internet are especially at high risk.

The communist government continues to work to control and influence the country's internet usage, but the government's hold on its people is beginning to loosen. With this new freedom comes new opportunities, both for honest citizens and criminals working from China. Investment fraud, romance scams, and advance fee fraud are all on the rise. In some cases, criminal operations from countries as far away as Nigeria and the U.K. are using Chinese banks to smuggle funds. Businesses and individuals should be skeptical and verify any new relationships via an international background check or due diligence investigation.

Best of luck,

A. Hathaway
© 2011 A. Hathaway
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Wednesday, January 16, 2008
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What to know and how to recognize the threat

Investment scams have been on the rise around the globe, and unfortunately, have been rising in sophistication. Fraud was introduced to the Internet most notably by the Nigeria 411 scams, i.e. advance fee fraud. Times have changed.

Criminals are using today's worldwide access to the Internet to their advantage. Webhosting accounts for a new website, bank and credit accounts can now be easily opened via the Internet, from anywhere in the world. Having some false identification gives the scammer the upper hand here, as he has essentially created an alias with little, if any, traceable information.

Beware of the False Website

Many investment scams are taking the form of the classic advance fee fraud, but with a higher level of sophistication and (seemingly) credibility. Websites are often created with templates or a design is stolen from another reputable and legal investment company. Once the site is complete, the criminal has created what appears to be a legitimate website and company. The headquarters for these fictitious firms are often located in the United States, so the website claims. These sites are mearly a tool for fraud.

How to distinguish a real investment website from a fraudulent one? Search Google and Yahoo for the company to determine if there are other sites referencing the firm. Check the site itself to see if the firm has contact information. A website without an address or phone number is a red flag for potential fraud or scam. Search phone directories for the firm's telephone number. Lastly, check with the SEC's website for signs on how to recognize these investment scams, and to verify registration of the firm.

The Warning Signs

Although the level of sophistication in these scams continues to rise, an educated consumer can know the difference. Scammers today always contact their victims with an offer - the potential victim has been selected. The firm representative may speak perfect English, and even understand investments and asset management. He may even request you submit an IRS form and other documents. Bottom line, this person will request personal data and/or payment promptly and without ever meeting you. Be skeptical and ask for the firms' references and SEC filing.

How to Be Sure

If you've searched the Internet for references, checked local phone listings, maybe even contacted the SEC for verification, and spoke with company representatives and claimed references - and you're still not sure? Contact a professional international private investigator like Wymoo International or Philippine PI for help. Get the facts on who you're dealing with - then decide.

Best of luck,

A. Hathaway
© 2006-2009 A. Hathaway
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