Internet phishing (pronounced fishing) is when someone sends an e-mail to a victim acting as if they are the victim’s bank, credit card company, Paypal, or other financial institution. The e-mail will tell the recipient that their account has been compromised in some way and the victim needs to click on a link to verify they own the account, or they need to click a link and validate their username and password or they may even request the victim’s personal information such as date of birth and social security number.
Securities fraud covers a lot of topics. They include Ponzi and Pyramid Schemes as well as Late Day Trading, Advanced Fee Schemes and many other ways to take money from victims. This is very familiar due to the name Bernie Madoff. Bernie worked with high profile clients but con artists committing securities fraud can come from anyone. The red flag should fly when an investment person promises a high rate of return coupled with little to no risk.