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Released: August 05, 2010

Regulators’ top 10 investment scams

Source: John Waggoner, USA Today

Investment scams always sprout during a recession, and con artists are reaping a big harvest in this economic downturn.

“It’s pretty bad out there,” says Texas Securities Commissioner Denise Voigt Crawford. Investors desperate to make up losses from their 401(k) plans or stock portfolios are the primary victims, she says. What are the biggest pitfalls? The North American Securities Administrators Association released its annual Top 10 Investor Traps on Wednesday. Among them:

•Green schemes. Alternative energy frauds play on the allure of energy-efficient technologies. Some scammers pushed oil-spill cleanup technology in the wake of the Gulf oil spill.

•Affinity fraud. Con artists love a crowd, and particularly a crowd of like-minded people: church members, ethnic groups, professional groups. Check any adviser’s credentials before you do business with him.

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