This scam promises huge profits if you send your money “offshore” to another country. In most cases, the goal is to avoid or lower your taxes. Be skeptical of tax avoidance schemes – you could end up owing the government money in back taxes, interest and penalties.
There are other risks of offshore investing, too. If you move your money to another country and something goes wrong, you won’t necessarily be able to take your case to a civil court. It may be impossible to recover your money.
Pump and dump scam
In these schemes, scammers work through lists of potential investors to promote an incredible deal on a low-priced stock. You don’t know that the person or company contacting you also owns a large amount of this stock and the stock may not represent a legitimate business. As more and more investors buy shares, the value of the stock rises sharply. Once the price hits a peak, the scammer sells their shares and the value of the stock plummets. You’re left holding worthless stocks.
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