Scams and rip-offs - the offshore investor's greatest threat.

What form do these offshore scams and rip-offs take? How can ripoffs be avoided?

There have always been con-artists and rip-off merchants. There always will be.

  Nowadays, with the internet and ease of communication around the world, we are exposed not only to the local con-artist's tricks but to the thousands of others all over the world preying on anyone gullible enough to fall for their latest scheme to part you from your money.   So, in a way even if you don't invest in offshore investments you are still susceptible to offshore cons and rip-offs, simply by virtue of the fact that that's where they can come from.

  Here, however, we will focus on scams related to offshore investment of some form.

  Some of the rip-offs are pretty obvious - a promoter takes your money, promising to hide it from the Government tax agencies, and either disappears with it or blackmails you for more by threatening to turn you in to the very tax agency you were trying to duck.

  Beware of the lucrative investment being touted by a 'friend of a friend' who will take your money and see that it gets into the right place. If you can't access detailed information about the investment then don't touch it with a ten-foot pole. The 'right place' is bound to be some con-man's pocket and they'll be long gone before you realise it.   Sometimes it's greed that sets you up to be scammed. If you readily believe that some 'High yield program' or 'bank debenture program is really going to return 50% a month (with no risk to capital of course), then you are probably setting yourself up for a rip-off. Even though returns such as this can happen with some investments for short periods of time, you could well be deluding yourself in a fantasy. So it is wise to be wary of the promises of very high returns.   Other scammers are more subtle, offering to help you set up trusts to hide assets or income, or both. Now offshore investment structures are not necessarily shonky and investor motivation is not always greed.

  The cons arise from how the concepts are implemented and the claims that the promoters make regarding the benefits that are available with various structures and concepts.  There are entirely legal concepts and structures that can be used to have access to investments not available in your home country. These structures can also be used to protect assets from the litigation system which is rife in the US and increasingly so in Australia, and to do business on an international scale.

  To a imited extent, there are some offshore concepts that also offer tax deferral or tax exemption. These are legitimate reasons for venturing offshore and can be done legally without concealing income and infringing tax laws.   To protect yourself from these common rip-off operations you need to be informed in ways of recognizing them and do your due diligence with several information sources to avoid losing your investment offshore.

You are here:
Offshore Scams and Rip-offs - an introduction to the biggest offshore investing danger.

Spotting a scam - How to recognize a scam. Common traits of offshore ripoffs.

Spotting a Scam Business - The features of businesses and organizations which are out to take your money while under the guise of a legitimate business operation.

Spotting a Con-artist - How to recognize the typical characteristics of the conman after your money.

Common scams - a description of the main types of scam commonly perpetrated offshore and onshore.

Avoiding scams - How to go about avoiding being caught up in a scam onshore and offshore.

Reporting scams - Where to report scammers and their latest con job and bodies that can be of assistance.

Information scams - a warning about a type of scam that targets small amounts from offshore information seekers.