Investment scams can cost you a lot of money. If you are stuck in one of them, you know how difficult it is to recover and set up shop again. To avoid investment scams all you need to do is investigate. Yes, investigate all that you do for authenticity, reliability and stability and then, make an investment decision. Below are a few danger signs that can point out an investment scam:
1. Fast Money Making: Usually its all about making money at a fast pace, say, in a matter of days. You don’t believe it instinctively. But the scammer makes you believe in the process and persuades you to invest. Beware of such schemes. Understand that money cannot be made just like that, without putting in the required effort. Even if it is initially beneficial, it will crack down one fine day!
2. Foreign Investments: Anything that comes to you in the name of foreign investments is not dangerous. But you need to do your homework to know which of the foreign investments is fruitful. However, understand that no foreign investment is too be trusted as they do not come under your home country’s jurisdiction. So, check and choose foreign investments.
3. Tips from scam emails/letters: Never believe in all the tips regarding investments that you receive from scammers. No stock broker will suggest you a particular stock over another. And no one can be sure of when a stock will go up and when it will come down. Don’t become a victim of â€œPump and Dumpâ€ scam.
4. Never fall for high pressure tactics: Some scammers (financiers) may force you to take up a plan or scheme within a span of hours. They may say that you will lose benefits of the scheme if you delay and you do not have hours to lose. Don’t believe in such scammers. If it is a legitimate or authentic scheme, you will definitely have time to make a decision. Also, check with your local authority if the company/individual offering you the scheme is a registered member, licensed to do financial/investment business.