Quick Answers...Fraud Scams
I have received an offer in the mail to
invest in a film project. Does this seem like a good idea?
Investment opportunities in the entertainment industry
may sound glamorous, cutting edge and can’t-miss, but films,
infomercials and the Internet are among the most risky
ventures. Promoters often invite consumers into the world of
entertainment with promises of projects that have already
generated profits for industry insiders. Unfortunately, many
films never make it to a theater, let alone television or
video distribution. And even if a film succeeds at the box
office, financial backers are usually the last to get their
money back from the project.
So what’s the scoop on investing in supposed high-profit, low-risk entertainment-related offerings? According to the Federal Trade Commission, if you want to invest in a movie, buy a ticket. If you want to invest in cable television, subscribe to a service. And if you want to invest in the Internet, sign up with an Internet service provider.
Sandra McKinnon, Family Financial Education Specialist, University of Missouri-Extension
Cynthia E. Crawford, Ph.D., Family Financial Education Specialist, University of Missouri-Extension
Last update: Wednesday, April 19, 2006