One of the most common types of scams that affect investors is a bonds scam. These schemes are operated by unscrupulous individuals who use the names of well-known institutions. The best way to avoid getting scammed is to be very careful about the investment opportunities that you choose. These are often backed by the International Monetary Fund (IMF). It is crucial that you keep your money safe. Listed below are some warning signs of bonds scams.

A classic Ponzi scheme was a classic investment-bonds scam. It involved the active cooperation of many people – including brokers, real companies, and innocent investors. The perpetrator managed to rob $35 million from the investing public of the US. But that is not the only way to avoid being a victim of a bonds scam. It is important to remember that not all high-yield investments are scams. It is best to be cautious, especially if they seem too good to be true.

Bonds scams can also occur through impostor investment companies. The scammers disguise themselves as legitimate financial services providers, offering investors high-yield bond investments. ASIC has previously warned of two separate operations that target investors. The scammers target people by contacting them online or through a comparison site. They will ask for money up front in exchange for a high yield. In both cases, the investor risks losing all their money.