If you are thinking about investing in your future, you had better watch where you send your money.

According to a press release from Secretary of State Jesse White, “prime bank” scams are gaining frequency.

The name comes from what con artists call the “prime bank note,” which is their form of payment, said Bill Houlihan, chief deputy director of the security department for the secretary of state.

Last year, sources reported that more than $1.5 billion was lost worldwide, Houlihan said. The losses can be attributed to low interest rates and inconsistent equity markets.

Because the prime bank scams promise high yield returns, more people chose to use them as their investment brokers.

“People want to believe there are secret ways to make fabulous amounts of money,” White said. “But there are no shortcuts in investing. Simply put, prime banks do not exist.”

Affinity fraud is a common scam.

“The con says, ‘God said you would get this money,’ and business gets even better,” Houlihan said.

Prime banks also are reaching other countries via the Internet.

“The latest thing is their Web sites,” Houlihan said. “They reach everywhere, so they can get money from all over the world.”

One of the largest prime banks was started in Mattoon, Ill., by Clyde Hood, a 66-year-old electrician.

“He didn’t ask for a lot of money up front, so people were more willing,” Houlihan said. “People bite on that kind of stuff, especially when high returns are involved.”

Hood became so successful that he had Fed Ex trucks delivering money from all over the world to him, Houlihan added.

“They are surprised by the amount of money they end up making, and just keep going,” Houlihan said.

After a six-year investigation, he was caught by the Secretary of State Securities Department, who revealed that the scam had raked in more than $18 million. Nineteen people were indicted and Hood received a 14-year jail term.

Another prime bank fraudulent operation was busted in Rockford. Lynda Frykholm was sentenced to 12 years in prison after scamming 220 people across the U.S.

To prevent yourself from falling victim to prime banks scams, Secretary White offered this advice to people who are thinking about investing.

Before you give anyone any money, always get written information about the firm and your investment, get a professional, third-party opinion, make sure the investment meets your goals and find out if the investment agency is licensed.

To find out whether an investment firm is licensed, call the Illinois Securities Department at 1-800-628-7937 or visit www.cyberdriveillinois.com.