Saturday, March 13th, 2010

Share Scams

Many people are not really used to share trading and so when they receive an offer to buy their shares from them just by filling out the provided form, there are a number of people who do just that. While those sending out the form may claim that it is a hassle free way of selling your shares it is in fact just the start of major hassles unless you really do like throwing money away.

Here’s how it usually works.

Let’s say you have acquired some shares from somewhere and that their current value on the share market is about $10,000. The scammers locate your details from somewhere and send you a letter offering you $4,000 for your shares. All you have to do to sell the shares to them is to sign a form giving them an irreversible power of attorney over the shares. Having done that they can then take control of the shares. In some cases you may actually receive the $4,000 that they offered you (in which case you were scammed out of $6,000) or they may never send you any money leaving you $10,000 out of pocket.

Never ever sell shares to someone who sends you an offer like that.

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