<h2 class="wp-block-heading"><span class="blackgraphtx"><strong>Investment-Related Scams</strong></span></h2>



<h3 class="wp-block-heading"><span class="blackgraphtx"><strong>Letter of Credit Fraud</strong></span></h3>



<p><span class="blackgraphtx">Legitimate letters of credit are never sold or offered as investments. They are issued by banks to ensure payment for goods shipped in connection with international trade. Payment on a letter of credit generally requires that the paying bank receive documentation certifying that the goods ordered have been shipped and are en route to their intended destination. Letters of credit frauds are often attempted against banks by providing false documentation to show that goods were shipped when, in fact, no goods or inferior goods were shipped.</span></p>



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<p><span class="blackgraphtx">Other letter of credit frauds occur when con artists offer a “letter of credit” or “bank guarantee” as an investment wherein the investor is promised huge interest rates on the order of 100 to 300 percent annually. Such investment “opportunities” simply do not exist. (See Prime Bank Notes for additional information.)</span></p>



<p><span class="blackgraphtx"><strong>Tips for Avoiding Letter of Credit Fraud:</strong></span></p>



<ul class="wp-block-list">
<li><span class="blackgraphtx">If an “opportunity” appears too good to be true, it probably is.</span></li>



<li><span class="blackgraphtx">Do not invest in anything unless you understand the deal. Con artists rely on complex transactions and faulty logic to “explain” fraudulent investment schemes.</span></li>



<li><span class="blackgraphtx">Do not invest or attempt to “purchase” a “letter of credit.” Such investments simply do not exist.</span></li>



<li><span class="blackgraphtx">Be wary of any investment that offers the promise of extremely high yields.</span></li>



<li><span class="blackgraphtx">Independently verify the terms of any investment that you intend to make, including the parties involved and the nature of the investment.</span></li>
</ul>


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