Don't Fall For Investment Scams - Part 1

Dec. 04, 2022 11:00 AM ET182 Comments

Summary

  • There is a persistent pattern of investment frauds, which often intensifies when stock markets decline or when interest rates are on the low side.
  • Many of these frauds exist outside or on the fringe of regulated markets like the stock market and insured bank deposits. There are substantial advantages to sticking with these markets.
  • In order to understand risk and to protect oneself, an investor needs to be familiar with the basic protections that make certain investments relatively safe from fraud.
  • This part will discuss bank deposits, brokerage accounts, and insurance products and the measures taken to make them safer for investors.
  • While you can lose lots of money in the stock market, certain important protections create buffers against grossly fraudulent behavior.
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Phone Scam, fraud or phishing concept.

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Co-produced with Philip Mause

It was often said that the early part of this century was the "golden age" of fraudulent schemes capped off by the enormous Madoff catastrophe, which is still the subject of media attention. Madoff was

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This article was written by

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Rida Morwa is a former investment and commercial Banker, with over 35 years of experience. He has been advising individual and institutional clients on high-yield investment strategies since 1991.

Rida Morwa leads the Investing Group High Dividend Opportunities where he teams up with some of Seeking Alpha's top income investing analysts. The service focuses on sustainable income through a variety of high yield investments with a targeted safe +9% yield.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Treading Softly, Beyond Saving, PendragonY, Philip Mause, and Hidden Opportunities all are supporting contributors for High Dividend Opportunities.

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