12 News Defenders expose online investment fraud - WAFB 9 News Baton Rouge, Louisiana News, Weather, Sports

12 News Defenders expose online investment fraud

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MONTGOMERY, AL (WSFA) - With interest rates as low as they are, it's a great time to buy a house, but a lousy time to invest. Rates on many 5-year CDs, for example, are below 1%.

That's why it's easy to get suckered into amazing investment deals. But sometimes the deals are scams. And they're cropping up more often.

Joseph Borg and his team at the Alabama Securities Commission discovered outlandish investment claims made by an England-based website called 'Profitable Sunrise.' Its slogan was "get richer with every sunrise."

The website was promising investment returns of 2.15% per day. That's an outrageous 700% per year!

"I think because they used a per-day percentage, people kind of glossed over the mathematics," Borg explained.

Borg says some Alabamians fell victim to the scam. His office issued a cease and desist order and 'Profitable Sunrise' is no longer online.

But there are others still out there.

"And some of the websites are really slick," Borg warned. "They look professional. They sound professional. If you read them carefully though, you go, 'what's that all about?'"

So if anything sounds suspicious, think twice. And before making any investment, Borg advises asking if the company is licensed to do business in Alabama.

"We have a great statute here. It says if you want to do business in Alabama, no matter where you are, get a license."

To find out if an investment company is licensed in Alabama, it's as easy as calling the Alabama Securities Commission. The number is 1-800-222-1253.

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