Common Mutual Funds Scams

[MadMax]

Even though Mutual Funds is considered one of the safest investments, there are a lot of scams in the Mutual Funds Market. Some common mutual fund scams include:

1. Ponzi Schemes: Fraudsters create fake mutual funds, using new investors' money to pay returns to earlier investors.
2. Churning: Excessive trading by brokers to generate commissions, depleting investor returns.
3. Misrepresentation: False claims about fund performance or risks to attract investors.
4. Front-Running: Brokers trade stocks for their own accounts before executing large client orders to profit from the price movement.
5. Late Trading: Buying or selling fund shares after the market closes at outdated prices.
6. Phantom Funds: Nonexistent funds marketed to steal investors' money.

These scams exploit investor trust and lack of financial literacy.
By the way, have you ever been scammed by any of these scams?

 

[Heatman]

There was a lady called Mercy Cindy Kalu on Facebook who was a very popular criminal that's into this Mutual Funds Scam. She had millions of followers in her group where she milked most of them. I was a victim of her scam too but I didn't lose much. It was around $500 I lost to her mutual funds scam.

 

[Suba1]

I have never been fooled by scam mutual funds, but around 2016 I was fooled by a ponzi investment scheme in the form of Bitcoin. In my opinion, mutual fund apps/websites are easy to identify as legal or not, because to operate a mutual fund you have to be registered with the government.