{"id":36974,"date":"2008-03-26T16:35:41","date_gmt":"2008-03-26T21:35:41","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/uncategorized\/how-to-avoid-losing-your-money-to-investment-frauds.html"},"modified":"2008-03-26T16:35:41","modified_gmt":"2008-03-26T21:35:41","slug":"how-to-avoid-losing-your-money-to-investment-frauds","status":"publish","type":"corporate","link":"https:\/\/corporate.findlaw.com\/litigation-disputes\/how-to-avoid-losing-your-money-to-investment-frauds.html","title":{"rendered":"How to Avoid Losing Your Money to Investment Frauds"},"content":{"rendered":"
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Washington, D.C. — Every year, Americans lose more than a billion dollars to investments that turn out to be fraudulent. Companies engaged in fraud often operate a particular scam for a short time, quickly spend the money they take in, and then close down before they can be detected. They reopen under another name selling another investment scam.<\/p>

Fraudulent investment promoters are glib and resourceful. They may tell you that they have high-level financial connections; that they're privy to inside information; that they'll guarantee the investment; or that they'll buy back the investment after a certain time. To close the deal, they may serve up phony statistics, misrepresent the significance of a current event, or stress the unique quality of their offering to deter you from verifying their story.<\/p>

The Federal Trade Commission suggests that potential investors can avoid losing their money if they could only recognize a phony sales pitch. Here's what to listen for:<\/p>