Recognizing investment fraud – when should the alarm sirens be wailing?

Investment fraudsters continue to be on the move. The reality of investment income is bitter: negative interest rates, high fees and uncertainty among the working population allow criminals to rip off and assets to disappear in 2021. But why and how does an ordinary citizen avoid falling victim to investment scammers? No patent remedy, clear warning signs: Interjection by attorney, Dr. Thomas Schulte

Reality and reality – the reality of investment income

Now the most important: small test lies to check if someone falls in.
Scammers shout, „Give me your money, you’ll be rich.“ Scammers predict substantial wealth income in a wait. This suits the victims (humans tend to eat the flesh of other Neanderthals along with them without first exposing themselves to the exertions of an extended and dangerous hunt).

What is property income?

The dictionary says: „Property income is the income, net of expenses incurred, received by the owner of an asset or nonproduced tangible property (land) during the income reference period in return for providing financial resources or nonproduced tangible property to another institutional unit.“ In other words, someone gives money and gets a return or interest.

Property income is minimal

According to available data, property income is currently falling in Europe Source Federal Statistical Office.

It states:
„Calculated in current prices, gross domestic product and gross national income in the 1st quarter of 2019 were u…while compensation of employees was 4.7% higher than in the 1st quarter of 2018, corporate and property income fell by 2.6%, according to initial preliminary calculations.“

Currently, there is little interest.

Why do scammers post a high profit?

As we know, no one beats the market in the long run. Scammers tune optimistic tones despite the statistical improbability. The fact is that natural science has prevailed since the end of the Middle Ages 500 years ago. This means that a high profit has to be proven. People shy away from the risk of losing money and prefer to keep their money with them. Fraudsters claim: high profit with little risk.

High profit, no risk? There is no such thing!

In Prime Bank Fraud (PBB) with Standby Letters of Credit (SLC), Prime Bank Guarantees (PBG), Prime Bank (-Promissory-) Notes (PBN), (Prime-) Bank Debentures, Mid Term Notes (MTN) and similar instruments the same fraud characteristics appear regularly:

The extremely high returns in the order of 20 to 200% that are promised by bank fraudsters as risk-free or achievable with low risk have nothing in common with reality. As is well known, return and risk of investments are closely linked: a higher risk means more chances for good returns and a greater risk of losing money. Conversely, lower risk means lower returns. Exorbitant returns with no or low risk do not exist in the real financial market.

Realistic returns are in line with the market

In order to get a reference point/comparative benchmark (overview), which yields at low risk were or are achievable in the capital market over time, the Deutsche Bundesbank, for example, explains by referring to the current yield. The current yield of the Deutsche Bundesbank refers to bonds issued in Germany with an original maturity of more than four …


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