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A phone call can look official and still put your money in danger.
The FBI has issued (1) a warning about an “insidious” new twist on a longstanding scam — one that makes it “extremely difficult” for potential victims to determine whether they’re being targeted.
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For anyone with a phone, the takeaway is unsettling: the details that make a caller seem trustworthy may be part of the trap.
Real name. Official-looking number. Fake caller.
Victims in New Jersey have reported scammers impersonating FBI, DEA and Secret Service agents to steal their money.
The criminals disguise their calls with agency phone numbers and introduce themselves using real agents’ names.
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Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.