12.1.13 How to spot fraud

Look at the following examples. Decide if each one is fraud and then answer the questions. Check the answers to see if you are correct.

Brilliant Equity Marketing Associates (Ponzi scheme)


Example 1: Brilliant Equity Marketing Associates (Ponzi scheme). Description below.
Text version: Brilliant Equity Marketing Associates (Ponzi scheme)

How would you like to earn 100% on your investment? Yes, 100%!

Brilliant Equity Marketing Associates (BEMA) is offering an exclusive investment opportunity in high-value securities. Funds will be invested in high-return business ventures guaranteed to generate enough profits to pay a 10% monthly return.

Inside Investor Report says: “BEMA is a winner. Get in now.”

Who stands to gain?

Seniors: supplement you retirement income!

Young investors: build up investment capital by getting into the market early!

Everyone: earn extra cash for investor referrals!

Don’t delay. Investment subscriptions are limited. Call right away to talk to one of our qualified investment advisors about how you can profit from BEMA’s once-in-a-lifetime offer. Credit card payments accepted.

1. Is it a fraud?



Example 2: Email scam. Description below.
Text version: Email scam

From: A.E. Graham

To: Ms. Lepage

Dear Ms. Legpage:

I am strongly interested in purchasing the vehicle you listed for sale in your online posting of July 8. Your asking price of $27,599 is acceptable. I will shortly send you a money order for $27,599, which covers the change in currency (since I am in the U.S.) and shipping fees. As soon as you receive the money order, please cash it and immediately send me a check for the difference of $6,000 so that I can arrange for my representative to come and pick up the vehicle and drive it across the border. Please let me know the exact name you want the money order made out to, as well as your mailing address and phone number.

Thank you. I hope we can do more business together in the future.

A.E. Graham

1. Is it a fraud?


Date modified: