In today's world, there are many different investment scams that could potentially try to take your money. If you want to avoid these scams and keep your hard-earned money, you need to be aware of what some of them are. Here are some of the top investment scams that are currently going around.

1. Ponzi Schemes

One of the most popular types of investment scams is called the Ponzi scheme. This type of scam has been going around for many years and it does not show any signs of slowing down in the future. With this type of scam, you pay a certain amount of money to get involved. The money that you pay as part of your admission fee goes towards someone that joined the business before you. Many people refer to this as a pyramid scheme as well. Although there are legitimate multi-level marketing companies that use the pyramid method of payment, a Ponzi scheme does not actually provide any type of good or service. They are simply selling the opportunity to make a lot of money. If you attend a business presentation and you cannot tell exactly what product the company is trying to sell, you should be suspicious that it is a Ponzi scheme.

2. Senior Investment Fraud

Another common type of investment scam involves senior investment fraud. With this type of fraud, scam artists approach senior citizens in an attempt to take advantage of them. The scam artist will typically prey on the insecurities of the individual retirement savings. They will attempt to tell them about some amazing investment opportunity that is available to them. They will convince the senior citizen to give them a substantial amount of money. If you are a senior citizen, you need to be very skeptical of anyone approaching you about an investment opportunity.

3. Promissory Notes

Many individuals also attempt to sell promissory notes to unsuspecting investors. A promissory note is basically a note that is issued by a company with a promise of paying a certain amount of money in the future. Some companies issue these as a way to raise money. However, in order to sell promissory notes, you have to be licensed and registered to do so. Legitimate promissory note opportunities are usually difficult to find. Therefore, if someone approaches you about buying one, you should immediately consider them a scam.

4. Shady Stockbrokers

Many dishonest stockbrokers use a variety of tactics in order to make money off of their clients. They might try to distort the facts about a particular type of security in order to sell it to their clients. The stockbroker can potentially earn a commission or kickback from the seller of the security. 

5. Affinity Fraud

Affinity fraud is a type of fraud that affects large groups of people. With this type of fraud, scammers try to infiltrate the ranks of an organization or club. They will recruit a high-level member of the organization to help them with their scam. Before investing in any opportunities within your organization, make sure you check everything out first.

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