Scam Alert: Four emerging rip offs - WSFA.com: News Weather and Sports for Montgomery, AL.

Scam Alert: Four emerging rip offs

Posted: Updated:
  • More newsMore>>

  • Why are Americans obsessed with missing plane?

    Why are Americans obsessed with missing plane?

    Monday, April 21 2014 10:35 AM EDT2014-04-21 14:35:12 GMT
    From the disappearances of aviator Amelia Earhart to labor union leader Jimmy Hoffa, there's just something about a good mystery that Americans find too tantalizing to resist. Perhaps that's why the saga of...More >>
    From the disappearances of aviator Amelia Earhart to labor union leader Jimmy Hoffa, there's just something about a good mystery that Americans find too tantalizing to resist. Perhaps that's why the saga of missing...More >>
  • Boston Marathon begins under tight security

    Boston Marathon begins under tight security

    Monday, April 21 2014 10:14 AM EDT2014-04-21 14:14:07 GMT
    One year after a pair of homemade pressure-cooker bombs killed three people and wounded more than 260 others, turning a day of athletic triumph into one of tragedy, the Boston Marathon returns to the streets Monday.More >>
    The 118th running of the Boston Marathon began under heavy security Monday morning, a year after the bombings near the race's finish line that killed three people and wounded more than 260 others.More >>
  • SKorean president: Ferry crew actions 'murderous'

    SKorean president: Ferry crew actions 'murderous'

    Monday, April 21 2014 9:23 AM EDT2014-04-21 13:23:30 GMT
    South Korean President Park Geun-hye said Monday that the captain and some crew members of the sunken ferry committed "unforgivable, murderous acts" in the disaster, which left more than 300 people dead or missing.More >>
    South Korean President Park Geun-hye said Monday that the captain and some crew members of the sunken ferry committed "unforgivable, murderous behavior," while criticism of her own government's handling of the disaster...More >>
PHOENIX (CBS5) -

An organization made up of state securities regulators is warning consumers about four new scams that could affect people's personal wealth.

The North American Securities Administrators Association, or NASAA included the new threats in its annual list, which you can find here.

The emerging threats include:

  • Crowd funding and internet offers
  • Inappropriate advice from financial advisors
  • Self-directed IRAs
  • Investment-for-Visa schemes

Crowd funding is a way for companies to attract investors over the internet. The strategy was made possible by a law enacted by Congress this year. But consumer advocates and organizations like the NASAA believe it opens the floodgates to con artists by allowing them to contact victims via the internet.

Inappropriate advice from investment advisors are nothing new, as the Bernie Madoff case illustrates. But in 2011, state securities regulators doubled the number of actions they took against investment advisors.

Self-directed IRAs are meant to allow individual investors to directly choose the stocks and finds they want to buy with their own retirement savings. But the NASAA and other consumer advocacy groups have identified several cases where IRA custodians have directed investments into fraudulent and worthless Ponzi schemes.

EB-5 Investment-for-Visa schemes take advantage of something called the "Immigrant Investor Program." It grants visas to foreign citizens who invest a minimum of $500,000 in a new business. It's meant to help create jobs here, but consumer advocates warn that fraudulent promoters may try to make the new businesses seem like safe investments, by incorrectly connecting them to a federal jobs program.

Copyright 2012 CBS 5   (Meredith Corporation). All rights reserved.

 

Powered by WorldNow