The one who makes the quick and easy profits, however, usually is not the investor but the promoter. In a typical scam, the promoting company's officers, brokers, and other insiders purchase stock at a fraction of what the public pays. Once boiler room sales have driven up the price, the promoters sell out at a large profit, the stock prices collapse, and investors are left holding the bag. In foreign bank investment scams, telemarketing con artists extol the benefits of investing in loans, certificates of deposit, insurance, currency speculation programs, and other financial offerings of foreign banks. False claims are made regarding the high returns guaranteed from such investments.
Profits are anything but guaranteed.
In most cases, the investor's money goes no farther than the promoter' s pocket. Carefully scrutinize investment offerings made via on-line computer services. Do not assume that your online service polices its investment bulletin boards for frauds. Do not be high-pressured into buying. If you have any doubts, make no promises or commitments, no matter how tentative.