how many times have we found ourselves wound up with the wrong person or accepting financial advice from someone unknown to us how many times have we listened to the sane minds that warned us from venturing into the unknown if only we etched the famous words under fair words beware of fraud on our minds we would have been less hassled by investment frauds that are mostly avoidablemost money scams that we fall prey to are not just the inventions of an insidious mind they just mirror our callous attitude towards money common investment frauds happen when we let our hearts rule over our minds ignoring important information about internet scams or not checking our email sources has caused much grief to people affected by instances of investment fraud here are some common investment frauds you cant afford to ignoreinvestment fraud 1 unwarranted rapporthave you ever wondered how many times your relatives or peers may have nudged you into investing your savings into schemes promising you high returns within a short period this kind of familial influence extends to socioreligious communities closeknit friends or kitty group members wherein one or more members try to induce others into alleged investment opportunities this is a very common strategy employed by insurance agents wherein they convince an elderly or influential member of a group into buying policies involving high commissions this member then goes on to influence the rest into investing in the aforesaid instruments at times this member also conjures up incidents involving a distressed family member to create a false sense of affinityincidents involving investment frauds like these are like cheese rat traps you realize the ignominy and pain only when you find yourself tricked into investment schemes with suggestions of high profits or assurance of safety this happens mostly when emotions supersede your rationale behind all your investment decisions you can avoid falling prey to such incidents by first researching the company and the product before putting your money into it never forego the basic rule of personal finance that says dont invest if you dont understandinvestment fraud 2 internet fraudshow many times have you checked the validity of emails from alleged spokespersons of banks insurance organizations or mutual fund companies scammers pretend to hold positions of authority send emails to gullible investors advising them to invest money in alternate schemes transfer money into different deposit accounts funds or policies or reinvest the maturity proceeds of another policy into some bogus financial instrument the best way to save your money from such a moneylaundering racket is to ignore unsolicited emails suggesting unique investment positions no matter how remarkable the offers may sound or how authoritative the emails may sound verify the authenticity of the email by calling up your bank or relationship manager most importantly do not invest unless you wish to and invest through a reliable source onlyinvestment fraud 3 pump and dump schemenews circulating how the securities and exchange board of india probing incidents of largescale pumpanddump