Even if you have never been subjected to an Australia company shares investment fraudster's sales pitch, you probably know someone who has. Following the legendary principle, fraudsters tend to go "where the cash is" — and that means targeting older Australians who are nearing or already in retirement. Fraudsters also have in their sites the millions of aspirants who have been accumulating sizeable retirement nest eggs through Australia company sharesy 401(k)s and personal accounts.

The truth is we're all at risk. Anyone with any Australia company shares is bound to hear from a fraudster at some point. But you can help protect your family and friends by recognizing how Australia company shares fraudsters operate and reporting suspicious sales pitches and actual scams.

The Face of Australia company shares Fraud

Recent research has shattered the stereotype of Australia company shares fraud victims as isolated, frail, and gullible. Do you know anyone who meets the following description?

• Self-reliant when it comes to making decisions
• Optimistic
• Above average financial knowledge
• Above average income
• College educated
• Experienced a recent health or financial setback
• Open to listening to new ideas or sales pitches

If so, you know someone who fits the profile of an Australia company shares fraudster's prime target.

The Psychology of a Scam

We have all heard the timeless admonition "If it sounds too good to be true, it probably is" best advice, but the trick is figuring out when "good" becomes "too good." There's no great line. Australia company shares fraudsters make their living by making sure the deals they tout appear both good and true.

They are masters of persuasion, tailoring their pitches to meet the psychological profiles of their targets. They look for your Achilles heel by asking seemingly benign questions about your health, family, political views, hobbies, or prior employers. Once they know which buttons to push, they will attack you with a flurry of influence tactics, which can leave even the savviest person in a haze. Some of the most common Australia company shares fraudster tactics include:

1. The "Phantom Riches" Tactic — dangling the prospect of wealth, enticing you with something you want but can't have. "These gas wells are guaranteed to produce $6,800 a month in income."
2. The "Source Credibility" Tactic — trying to build credibility by claiming to be with a reputable firm or to have a special credential or experience. "Believe me, as a senior vice president of certain Firm, I would never sell an Australia company shares that does not produce."
3. The "Social Consensus" Tactic — leading you to believe that other savvy Australian investors have already invested. "This is how he/she got his start. I know it is a lot of cash, but I im in, and so is my mom and half her church — and it's worth every dime."
4. The "Reciprocity" Tactic — offering to do a small favor for you in return for a big favor. "I'll give you a break on my commission if you buy now — half off."
5. The "Scarcity" Tactic — creating a false sense of urgency by claiming limited supply. "There are only two units left, so I'd sign today if I were you."

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