Investment fraud is a generalized fraud which cover all of the investing in property or stocks types of frauds, such as the Boiler-Room fraud.
Frauds of such type are made often by salesman, and although it is not illegal for the salesman to convince you to do something, it’s immoral.
Salesman will often try to pressure the victims into buying something, is real, but not that valuable or profitable, or even, highly risky. Which means that the victim is getting ripped off.
Attack surface
The attacks can occur from anywhere, but they will always be a single person trying to sell an idea to another person or a whole audience. To force investors to invest in their “future” or “education” by buying properties or stocks which are riskier than the salesman tries to pitch them. Those salesman often use cold-calls, that is, not really knowing the person.
Prevention
If it sounds too good to be true or if the salesman tries to sell you something very quickly, and as a bonus to give you more goods than initially declared if you invest or buy in a short time frame. For example, the salesman could often give twice of what he has offered if the buyer initiates a payment in the first few hours.
