Investment fraud is under the topic of computer fraud and abuse in Accounting Information system (AIS) subject.

1. ACCOUNTING
INFORMATION SYSTEM

2. WHAT IS INVESTMENT FRAUD?
• It is occurs when someone proses as an investment professional or
company and takes your money with the promise of investing it,BUT
uses it for other purposes, and you do not get your investment back.
• The individual is effectively stealing your money.
• Both individuals and companies can be victims of investment fraud.
• Or another Word is “scammer”

3. HOW DOES INVESTMENT FRAUD ACCUR?
• Fraudulent investment schemes or scams are often marketed by
telephone using high-pressure selling techniques.
• The Internet and email are also common vehicles for scams and
disreputable salespeople.
• Some of the most elaborate schemes and solicitations may even
involve rented offices, colourful brochures and complex legal
documents or offers.

4. COMMON TYPES OF INVESTMENT FRAUD
1. Securities fraud, including stocks, bonds, mutual funds
2. Ponzi or pyramid schemes
3. Real estate swindles
4. Boiler room scams – investment in new companies or new product ideas
5. Off shore investment scams
6. Foreign Exchange scams (Forex)
7. Pump and dump
8. Retirement / pension account scam
9. Affinity fraud
10. West African / Nigerian letter scam
11. Fake cryptocurrency scams

5. FAMOUS INVESTMENT FRAUD
• PYRAMID SCHEMES:
Scammers will tell you that a small investment can earn a large pay out—or profit. But you have to
find others to invest too. The “profit” that you get is really just money paid by other investors.
• Foreign Exchange scams (Forex)
The ads look legitimate and offer an exciting opportunity to invest money on the foreign exchange
(forex) market, buy software or sign up for trading courses.
the victim is usually not informed that it is a high risk investment. Again, the victim is likely to lose
their money.