Prime bank fraud is an investment scheme that offers promises of extremely high yields in a short period of time. Fraudsters claim they have access to secret financial products which they can buy at a discount and sell at a premium. Through reselling the products multiple times, fraudsters claim to produce high investment returns. Scam artists promoting these schemes often associate the financial products they are selling to top world banks or secret government banking systems for the elite to give their products legitimacy. Scam artists seek to mislead investors into believing that well regarded financial institutions are participating in these financial products.
For more information, see:
- Securities and Exchange Commission (SEC): http://www.sec.gov/divisions/enforce/primebank/howtheywork.shtml The SEC describes how “prime bank” fraud works and offers signs of banking-related investment fraud. http://www.sec.gov/divisions/enforce/primebank.shtml The SEC provides a warning to all investors about “Prime Bank” and other Banking-Related Investment Schemes.