Don't rely on a friend to fill you in. As long as there are investments, there will be investment scams. However, with a little common sense and a few precautions,you should be able to avoid becoming the victim of one. Just when you think that every gimmick to separate you from your money has been exposed, a slew of new ones appears. The sad truth about gimmicks is that those who can least afford to lose money are the ones who get hurt the most.
Gimmicks come in many forms.
What we're talking about is blatant, shameless deceit that's put forth under the guise of protecting you. Each one has a different song and dance. The scam that calls for such strong words is the guaranteed account scam. The broker calls you up and makes a pitch about a great investment idea that guarantees you won't lose a dime in principal. The scam involves U.S. Treasury zero-coupon bonds, which are guaranteed by the government.