An old scam known as the Prime Bank investment has been raising its ugly head on the net. This scam involves the fraudster offering a prime bank investment with risk free annual returns of more than 20%. These investments are purportedly guaranteed by the world leading banks - prime banks. Once invested, the fraudster disappears with the investor's money.

This scam comes under different names: secured trading programs, high-yield investments, prime bank notes and standby letters of credit. In all cases the investor is told that the investment is guaranteed by a prime bank.

There is always an air of secrecy about them such that no one knows about them. These schemes tout that they are usually only available to the "elites".

If you come across one of these prime bank investments, think twice about investing in it. Call your broker to determine whether the investment is legitimate. If it is not legitimate call you local securities commission in your country and submit a Complaint at our Complaint Centre or send us an email so that we can inform others.