A recent bond scam in New York City has brought the United States government into the spotlight once again. The bonds were issued by the CIA in the 1960s to help the then-China dictator, Chiang Kai-Shek, fight communists. However, when he died, his family buried the bonds, and now these fraudulent securities are being sold at fractions of their face value. Even worse, they do not bear any provision that is remotely similar to those of U.S. Treasury securities.

Scammers typically impersonate well-known financial services organizations. They may send professional-looking prospectuses or collect contact information through fake investment comparison websites. They then ask investors to transfer funds to a bank account. When this is done, the investors are at risk of losing all of their money. In some cases, the scammers are based offshore, which means they can be impossible to detect. To avoid these scammers, make sure to do your own research and stay away from these companies.

The first step to avoiding a bond scam is to understand what causes it. These investments are incredibly volatile. It is important to understand what causes them and how you can protect yourself from falling victim to one of them. If you’re interested in a particular investment, it is best to contact the securities regulatory agency and learn more about its practices. The SEC publishes a list of companies that have committed bond fraud.