Prudent Money
More Investment Scams  E-mail

There is nothing new about the types of investment scams that we are presented with day in and day out.  They normally boil down to the types we have talked about before.

But what does change is the manner in which these schemes are marketed to us.  The National Association of Security Dealers (NASD) gives us an example on their website (http://www.nasd.com).  They point to a post 9/11 flavor of investment scam marketing.

These same fraudulent promoters are using stocks that have a defensive or new world underpinning.  They are preying on people’s fears of issues such as terrorism and anthrax.  They promote stocks with biological detection products or security related products.

Every new disaster provides fodder for schemers.  Even events such as Hurricane Katrina have brought the potential for fraud, as if she hadn’t caused enough misery. The Commodity Futures Trading Commission (CFTC) warned investors, via a press release, to be on the lookout for investments that claimed they could make profits from the disaster.

While the companies listed or promoted in these schemes might be legitimate corporations with real products, be sure and separate the investment from their marketing pitch.

Don’t be caught off guard with your emotions.  This is simply the world we live in, and unfortunately there are those who are trying to turn a profit out of our fears.