If you’ve been hearing about the recent flurry of activity surrounding the commodity pool industry, you may be a victim of a commodity scam. Unfortunately, these types of schemes often involve individuals or firms misusing your money. A common way that these scams operate is through advertising, where the operators of the pool make false claims about the profits that they can offer and the low risk that they can take. These firms will often solicit you from social groups or referrals and even promise large returns if you join their pools.

Another common type of commodity scam involves a marketing practice whereby the victim pays a much higher price for a product than it is worth in the market. In this scenario, the customer actually does not receive the value they paid for it. This is a problem for business owners, because the prices they charge their customers are too high. Consumers end up paying far more than they would have otherwise paid. To avoid falling victim to a commodity scam, check for CFTC reports on the company selling the product.

Another common type of commodity scam occurs when a seller sells an old product at a much lower price than it’s worth in the market. The customer is not getting what they paid for, which results in a loss for the seller. It is also common for prices to be too high for some customers, so there is always the chance of losing money. The best way to protect yourself from a commodity scam is to be more informed about your options.