Fraud & Scams
Guaranteed Return Scam
Definition
What is Guaranteed Return Scam?
A fraudulent offer claiming unusually high returns with little or no risk.
Example in practice
How This Looks in Practice
A promoter promises 10% every week regardless of market conditions.
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Related Terms
Fraud & Scams
Ponzi Scheme
A fraud that pays earlier participants using money from newer participants rather than genuine investment profits.
Fraud & ScamsPyramid Scheme
A scheme that rewards recruitment more than genuine product sales or investment activity.
Fraud & ScamsPump and Dump
Manipulating an asset upward through misleading promotion before selling into the inflated demand.
Market ParticipantsBroker
A person or firm that executes securities transactions for clients.