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
- Promissory Notes.
- Ponzi/Pyramid Schemes.
- Real Estate Investments.
- Cryptocurrency-Related Investments.
- 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:
- Investigating and assessing the financial risks posed by a company’s operations, as well as monitoring and regulating higher-risk activities.
- Communicate with regulators and auditors regularly to explain their risk monitoring, control, and prioritization techniques.
- Regularly examine data and solutions to verify all AML regulations are met.