Fraud stems from false claims of promises of goods, services, or financial benefits that do not exist, were never intended to be provided, or were misrepresented.
Anyone can become a victim of online investment fraud. Unfortunately, there is no standard profile for scammers or for their victims. While some scams target persons who are known or thought to have finances, most swindlers take the attitude that everyone’s money spends the same. It simply takes more small investors to fund a large fraud. Generally most scammers intentionally seek out families that may have limited means or financial difficulties, figuring such persons may be particularly receptive to a proposal that offers fast and large profits.
A favorite pitch is that small investors can become rich only if they learn and employ the investment strategies used by wealthy persons. Naturally, the imposter will teach them!
Although victims of investment fraud can differ from one another in many ways, they do, unfortunately, have one trait in common: Greed that exceeds their caution. They also possess a willingness to believe what they want to believe. Most con-artists make a career of their criminal activities. Some even join professional organizations to legitimize their schemes and project a respectable front. Beware before you invest your money!