Ask Andy: 5 terms that tip off an investment scam - WMC Action News 5 - Memphis, Tennessee

Ask Andy: 5 terms that tip off an investment scam

(WMC TV) - I work very closely with U.S. postal inspectors. I'm even related to one. My wife's uncle is a retired postal inspector.

Lately, the scams my inspector sources have been investigating involve investment scams. Ponzi schemes. Promises of something for next to nothing.

Here's a clue:  often the words or phrases investment scammers use to pitch their scams give away their scams.

The agents of the federal General Services Administration said these are five terms that give away an investment scam:

* "GUARANTEE." No legitimate investment is ever a guarantee of anything. Every investment has an element of risk.

* "HIGH RETURN." If the return is higher than the percentage return of typical investment plans, it's a ruse. Check with a licensed and credentialed financial advisor.

* "LIMITED OFFER." That's just a trick to pressure you into making a decision right away.

* "AS SAFE AS A CD." Then why isn't it a certificate of deposit? Either it is or it isn't. Get a prospectus that explains the investment.

* "THIS INVESTMENT IS IRA-APPROVED." An IRA (Individual Retirement Account) is an investment, not a regulatory agency. This statement is meaningless.

An investment scam-seller's actions speak even louder than those words. If the salesperson pressures you to borrow from your retirement funds to invest -- if he or she dismisses federal disclosure documents as "unnecessary" -- or if he or she promises immediate profits, it's time to drop that deal.

Copyright 2012 WMC-TV. All rights reserved.

 

  • News on WMCTV.comNewsMore>>

  • 9-year-old dies in crash after driver falls asleep behind the wheel

    9-year-old dies in crash after driver falls asleep behind the wheel

    Sunday, May 20 2018 11:59 PM EDT2018-05-21 03:59:31 GMT
    Jaliya Lewis (Source: Family)Jaliya Lewis (Source: Family)

    Memphis Police Department is investigating a deadly crash that happened early Sunday morning.  Police were called to the scene on Spottswood Avenue and Goodwyn Street where a car hit a tree.  Three children were injured in the crash and taken to Lebonheur Children's Hospital. Two of the children are in non-critical condition. Nine-year-old Jaliya Lewis died from her injuries. Police say the children were unrestrained in the back seat of the vehicle and were thrown to the ...

    More >>

    Memphis Police Department is investigating a deadly crash that happened early Sunday morning.  Police were called to the scene on Spottswood Avenue and Goodwyn Street where a car hit a tree.  Three children were injured in the crash and taken to Lebonheur Children's Hospital. Two of the children are in non-critical condition. Nine-year-old Jaliya Lewis died from her injuries. Police say the children were unrestrained in the back seat of the vehicle and were thrown to the ...

    More >>
  • Two people shot, killed in Memphis

    Two people shot, killed in Memphis

    Sunday, May 20 2018 11:34 PM EDT2018-05-21 03:34:04 GMT
    (Source: WMC Action News 5 Archives)(Source: WMC Action News 5 Archives)

    Two people were shot and killed in Memphis on Sunday, according to Memphis Police Department. 

    More >>

    Two people were shot and killed in Memphis on Sunday, according to Memphis Police Department. 

    More >>
  • As the BBQ competition wraps up, organizers prepare for 901 Fest

    As the BBQ competition wraps up, organizers prepare for 901 Fest

    Sunday, May 20 2018 11:13 PM EDT2018-05-21 03:13:09 GMT
    (Source: WMC Action News 5)(Source: WMC Action News 5)
    (Source: WMC Action News 5)(Source: WMC Action News 5)

    After a successful BBQ contest, organizers of Memphis in May are on to setting up for the next event--901 Fest. 

    More >>

    After a successful BBQ contest, organizers of Memphis in May are on to setting up for the next event--901 Fest. 

    More >>
Powered by Frankly