Investment fraud involves the illegal sale or purported sale of financial instruments. The typical investment fraud schemes are characterized by offers of low- or no-risk investments, guaranteed returns, overly-consistent returns, complex strategies, or unregistered securities. Investment fraud comes in many forms. Whether you are a first-time investor or have been investing for many years, here are some basic facts you should know about different types of fraud.

Common Types of Investment Fraud

  1. Promissory Notes.
  2. Ponzi/Pyramid Schemes.
  3. Real Estate Investments.
  4. Cryptocurrency-Related Investments.
  5. Social Media/Internet Investment Fraud

The role of anti-money laundering teams

Security controls continue to advance in order to keep financial businesses stress and fraud-free. The anti-money laundering teams generally considered their roles to be to identify and escalate suspicion relating to the perpetrators of investment fraud.

The problem is global and we have already helped a couple of hundreds of international businesses to readjust to the new normal. Our responsibilities include:

  1. Investigating and assessing the financial risks posed by a company’s operations, as well as monitoring and regulating higher-risk activities.
  2. Communicate with regulators and auditors regularly to explain their risk monitoring, control, and prioritization techniques.
  3. Regularly examine data and solutions to verify all AML regulations are met.