Bank fraud can vary greatly. It always involves finances. The harm is usually a large loss of money by the victim.
While this crime can occur in a variety of ways and involve different types of banks, high-yield investment fraud involves prime banks.
Carrying on the scam
In this type of bank fraud, a person attempts to scam the victim by using financial instruments that allegedly come from prime banks. These instruments are completely fake. They do not exist and hold no value. However, they appear legitimate. They are so real that almost anyone could fall for the scheme.
Reeling in victims
The people who perpetrated this fraud will make it even more enticing by claiming to have insider knowledge. They present themselves as financially successful people who know what is happening and have secret information. This approach is the other part of the scheme. It allows them to make the victim keep everything secret and not tell anyone, which opens the door to them being able to scam the person. In addition, they advertise in trusted publications, which only adds more legitimacy to their operations.
Planning targets
The people committing high-yield investment fraud will carefully choose victims. They often will go after entities with access to large amounts of money, but that also need a lot of money, such as charities and other nonprofits. They play up the fact that the organization can increase its funds with a limited investment in this guaranteed payoff.
The pushy nature of these people combined with the extravagant promises are a good tip-off that something is wrong. Unfortunately, those carrying out this type of bank fraud are very good at what they do, which means many people end up victims.
