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Wednesday
May182011

Beware of 'Get Rich Quick' Investment Scams

Ciaran Griffin/Stockbyte/Thinkstock(NEW YORK) -- Many companies prey on consumers, promising them a means to make money fast.  But as a scam involving a telemarketing firm shows, people need to be aware of these "get rich quick" investment schemes.

The Federal Trade Commission says many people were duped by a firm called American Precious Metals, which deals with gold, silver, and other precious metals.

Dama Brown, an attorney for the FTC, says the firm was "calling up consumers, generally cold calling consumers and promising them very high profits with very low risk in these leveraged precious metals transactions."

The firm, which has since been court ordered to shut down, ran its leveraged schemes by using borrowed money, putting consumers at great risk.

"Consumers have been induced to borrow money against their homes, take money out of their IRA accounts, borrow money from home equity lines, life insurance policies," says Brown.

She advises consumers to get on a "Do Not Call" list to cut their risk of being targeted.

Copyright 2011 ABC News Radio

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