Houston, TX (PRWEB) January 22, 2006
Separating the online investing scams from the legitimate opportunities for online investments is becoming more complicated with the proliferation of sham investment sites that “copy cat” legitimate sites. HYIPs, Ponzi, Matrix, MLM, Daily Pay, etc. are just some of the names that describe these online investing scams.
Invest Place (http://www.currencyreviews.com/investplace.php) is an online site that provides information about online investments, as well as, a method for the average investor to attain wealth through savings and patience.
The different types of investment fraud seen online mirror the frauds perpetrated over the phone or through the mail. The U.S. Securities and Exchange Commission (SEC) offers some sound advice for those looking to make online investments. Below are some general tips from Invest Place that have come from the SEC Internet Fraud Report.
Online investment frauds usually fall into one of the following categories:
The "Pump And Dump" Scam
It is becoming common to see messages posted online through e-mail, message boards and web sites that urge investors to buy a stock quickly or tell them to sell before the price goes down. Often the authors will claim to have "inside" information about an impending development or to use a “precise technical system” that contains a combination of economic and stock market data to pick stocks. In the majority of cases, these are insiders or paid promoters who stand to gain by selling their shares after the stock price is pumped up by gullible investors. Once these fraudsters sell their shares and stop hyping the stock, the price typically falls and investors lose their money. Fraudsters frequently use this ploy with small, thinly-traded companies because it's easier to manipulate a stock when there's little or no information available about the company. Invest Place (http://www.currencyreviews.com/investplace.php) wants to provide information to the average investor that is serious about acquiring wealth through a method of persistent saving and investment.
Be wary of messages that read: "How To Make Big Money From Your Home Computer!!!" One online promoter claimed that investors could "turn $5 into $60,000 in just three to six weeks." In reality, this program was nothing more than an electronic version of the classic "pyramid" scheme in which participants attempt to make money solely by recruiting new participants into the program. Invest Place (http://www.currencyreviews.com/investplace.php) wants each investor to become empowered with enough information to determine legitimate investment opportunities from scams.
The "Risk-Free" Fraud
"Exciting, Low-Risk Investment Opportunities" to participate in exotic-sounding investments – such as wireless cable projects, prime bank securities, and eel farms – have been offered through the Internet. But no investment is risk-free. And sometimes the investment products touted do not even exist – they're merely scams. Be wary of opportunities that promise spectacular profits or "guaranteed" returns. If the deal sounds too good to be true, then it probably is. Invest Place (http://www.currencyreviews.com/investplace.php) encourages each investor to examine all investment opportunities carefully and to start out with a small amount of money and invest progressively until wealth is obtained.
In summary, be wary of online investment opportunities that make lavish promises, only invest what you can afford to lose, completely check out an opportunity before investing and learn methods to determine legitimate online investment programs from fraudulent programs.
For additional information on the news that is the subject of this release contact, Joseph Murphy or visit Invest Place (http://www.currencyreviews.com/investplace.php)
About Invest Place:
Is owned and operated by a group of dedicated financial professionals that desire to educate the average investor and provide that same investor a method to obtain wealth over the long term.
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