The history of investment fraud demonstrates that fraud promoters look to the mainstream marketplace for ideas to imitate and for ways to induce consumers to invest. Law enforcement officials and consumers need to follow the headlines to forecast likely fraudulent investment schemes in 1997. Based on recent news stories fraud watchers can expect to see "too good to be true" pitches regarding Internet business investments and partnerships to build out new "information superhighway" communications systems. Fraud busters also will be looking for changing regulations affecting investments, because investment fraud promoters take advantage of changes in securities laws and telecommunications rules to come up with new investment fraud strategies.(16)

The Scope of the Problem