DETAILS ON INVESTMENT FRAUD IN THE UNITED STATES

DETAILS ON INVESTMENT FRAUD IN THE UNITED STATES

Introduction

The investor program has been a big hit for people from other countries since it started in 1990. People from abroad can put down up to $1.05 million in a business that creates jobs or up to $800,000 in a local business in a less-populated area or one with high unemployment under the regional center program.

This program is pretty easy for people and their families to get a green card, and it lets them have a shot at becoming American citizens later on. Over the last 30 years, more people from the US have wanted an investor visa, but at the same time, more crooks have started trying to cheat these people out of their money, especially when there is a lot of false information around.

These frauds in the investor visa world come in many shapes and sizes, and the bad guys use all sorts of tricks to take from their victims. These frauds don’t just target US residents; they can hit non-citizens too. The people pulling these frauds know the ins and outs of the immigration system, and they use this to their favor.

So, it is super important to keep an eye out for potential fraud and learn about the usual tricks in these schemes. Scams are the biggest fraud in the investor program, so you have to stay alert during the whole application process to make sure everything goes right and you don’t get duped.

If you are dealing with immigration issues and want to make sure you don’t end up losing money, don’t hesitate to reach out to immigration lawyers who are experienced and trustworthy.

In this blog, we are going to check out some of the most common scams in the investor visa world and tips on to avoid being a victim.

The nature of investment fraud

Investment frauds happen when someone tries to trick you into putting your money into something that is not real. They might ask you to put your cash into stocks, bonds, notes, stuff like that, or even real estate. Fraudsters could either lie to you or give you the wrong info about something that is actually legit. They might even set up a fake deal to pull you in.

Fraudsters could pretend to be a telemarketer or a financial advisor. They might seem smart, friendly, and good-looking. They could tell you there is this urgent deal you need to check out. They will try to win you over so you can hand over your cash fast without asking too many questions. Watch out for frauds related to getting a US investor visa.

Here are some common frauds to keep an eye out for:

• Frauds through mobile devices.

This is the go-to fraud for getting a US investor visa. You might get a call from someone who says they are from USCIS or some other government body. They will ask for your personal info, like your Social Security number, bank account details, or Passport number. They might also tell you to pay them over the phone to sort out something about your visa case or to speed things up. Remember, USCIS will never call you to ask for money. If you get a call like this, just hang up and don’t give out any personal info.

• Work-related frauds.

If you get a job offer in the US through email from a company you haven’t even applied to, you should be on your guard. Some fraudsters will ask you to pay to get the job. Keep in mind you can’t work in the US without the right visas, work permits, green cards, or citizenship. If a company says you can work in the US without any of these, they are probably lying.

This is a common fraud used to trick people looking for work in the US. While some fraudsters might offer you a job for a fee, real jobs don’t ask for upfront payments. These job offers could come in the mail, but they could also pop up on job boards or websites. A legit job offer might even help you get a green card or work visa, which are only given out by government agencies and on a case-by-case basis.

Be careful of job offers that seem too good to be true, especially if they promise a high salary and no experience needed. Fraudsters often try to get your personal info by asking for sensitive details like your social security number or bank account number before they even offer you a job.

To protect yourself from this kind of fraud, do your homework on the company and the job offer. Check out the company’s official website and look for reviews or info about them. If the company is well-known, reach out to them directly using their official contact info.

• Frauds on a targeted set of people.

Fraudsters also go after groups of people. These frauds trick folks who have joined a group because they share something like age, race, religion, etc. The fraudster acts like they are part of the group to get the trust of the leaders and other members. They hope that once the leader falls for the fraud, everyone else will too.

• Fraud with the hopes of unrealistic return on investment.

Fraudster’s tell people they will make a lot of money. They will give you the assurance of making huge profits. But really, these investments are fake or they are selling stocks that are practically worthless.

• Frauds using marketing tricks.

Fraudsters say a little bit of money will turn into a lot. But you have to get others to invest with you. The “reward” you get is just money from other people. The fraud falls apart when they run out of new investors or when they take all the money and run.

• Pump and dump schemes.

Fraudsters buy cheap stocks and lie about how good they are to make their price go up. People think the stocks are good, so they buy them at a high price. Then, the fraudsters sell them for more, making the stock price drop and leaving buyers with worthless stocks.

• Frauds promising to make up for lost money.

In this US investor visa fraud, the fraudster say they can get back the money you lost from other investments, but you have to pay them first. After you pay, they do nothing.

• Frauds about investing in unnecessary products with little or no value.

Sometimes, a financial advisor will try to sell you something that makes them rich but isn’t right for you. For example, they might sell you an annuity that takes years or even decades to pay off. If you want to cash out, you might have to pay a lot of fees. Or, they might charge you for services you didn’t get or products you didn’t ask for.

Forms of the investment frauds

US investor visa frauds operate taking three primary forms:

• The investment itself is fraudulent.
• The purported investment exists, but the funds you contribute do not go towards the legitimate investment.
• The fraudsters falsely represent themselves as a reputable entity.

In each scenario, the funds you invest in the US investor visa fraud are immediately transferred to the fraudster’s account instead of being allocated to any genuine investment. Recovering your funds becomes extremely difficult if they are sent offshore. As an investor, it is crucial to exercise caution, as every investor is at risk of falling victim to a US investor visa fraud, and each scheme is unique.

Possible ways investment fraud comes

US investor visa fraudsters can originate from various channels, with the most common being:

• Telephone communications.
• Social media platforms.
• Email correspondence.
• Text messages.
• Scams on websites.
• Dating applications.
• Romance manipulation.
• Paid advertisements.
• Scams on websites.
• Fraudulent investment trading platforms.

In all cases of US investor visa fraud from these sources, once you deposit your funds, you relinquish any control over them.

The deal offered by fraudsters

Fraudsters may present you with offers such as:

• Quick and effortless returns on investments, sometimes tax-free.
• Investments in stocks, cryptocurrencies, mortgages, real estate, or virtual assets.
• Promises of exceptionally high returns.
• Opportunities in options trading or foreign currency trading.
• Commissions for the salesperson to expand their clientele and encourage others to invest.
• An opportunity that seems risk-free or low-risk, with assurances like:
• The ability to sell at any time.
• A refund policy in case of non-performance.
• Transactions are insured or “guaranteed.”
• The option to exchange one investment for another.
• Access to insider information regarding initial public offerings.
• Special offers or discounts for early investors.
• The illusion of being a legitimate company to pitch their offer.

How to protect yourself from investor visa fraud

To protect yourself against investor visa fraud, it is recommended to:

1. Verify the broker’s license or check for any complaints filed against them.
2. Thoroughly review and understand the investment before committing to it.
3. Request written disclosures.
4. Ask the salesperson for their name and the company’s name and address.
5. Review the financial statements of both the salesperson and the company.
6. Avoid investing with a salesperson or firm that claims to be “senior certified” or “retirement consultants.”
7. Consult with an immigration lawyer.

By following these steps, you can significantly reduce the risk of falling victim to a US investor visa fraud.

Get help!

If you suspect you might be a target of fraud involving a US investor visa, don’t share any personal or financial info. First off, make a complaint with the FTC or USCIS about what happened. Then, reach out to any of our immigration lawyers at Gehi and Associates to find out if you can get the money you deserve. Check out what we do, or set up a meeting with us by getting in touch with us today!