Investment scams are getting more sophisticated and scammers are quite talented at deceiving people, resulting in more victims. “It’s becoming increasingly difficult to recognize investment scams,” said Carrie Hurt, CEO for the Council of Better Business Bureaus. “Scammers are using real-life situations, faking the websites of legitimate businesses, and sharpening their skills to outwit even savvy investors. Scam artists are experienced at the art of persuasion, and know which questions to ask to make you most susceptible to their pitch.” Ever wonder how scammers do what they do? FINRA Investor Education Foundation provides some interesting theories on the science behind scams. Here are some of the most common tactics: The “Phantom Riches” Tactic — dangling the prospect of wealth, enticing you with something you want but can’t have. “These gas wells are guaranteed to produce $6,800 a month in income.” The “Source Credibility” Tactic — trying t...
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