How To Protect Your Money From Investment Scams2 min read
It’s a good idea to grow your hard-earned money through investment. However, some fraudulent individuals take advantage of high hopes of potential investors to gain a big amount of returns and in the shortest time possible.
Here are some guidelines you may follow to avoid being victimized by investment scammers:
Check the background first. Know the company’s nature of business and the services and products it offers. Verify for the company’s legitimacy by checking with the government whether they are registered or not. Look for their licenses and accreditations, too. If it’s a salesperson you are dealing with, take some time to know about his transaction history.
Seek guidance from family or financial advisors. As the old adage goes, “experience is the best teacher”. Talk to someone you know who has experience on investing. They can give you tips on how to handle your money and recommend potential investment suggestions.
Be wary of your online activities. Remove your credit card online and keep your accounts private. Technology nowadays can enable scammers to steal money from accounts.
Do not be easily swayed by pressure. It’s natural for a company or salesperson to persuade you with their offers. But remember that a good business partner would give you an ample amount of time to think your investment over.
Ask detailed questions. Demand important data about the whole transaction and dissect down to the minute detail. A legit salesperson has s specific answer to a potential investor’s query. There’s little to no chance that a scammer can lay out the technicalities regarding investing.
Watch out for guarantees of high and fast returns. It is most likely be a scammer if the terms offered are too good to be true. Take note that no good investment has no certain degree of risk. Rule of thumb on investment is this: the higher the return, the higher the risk.
Disregard offer you are not attracted. Do not entertain strangers who asks money from you outright for investment. Remember that a reliable business partnership should be built in trust. Therefore, the money matter should come afterwards.
Be in charge of your own money. Take responsibility of your investment. Never allow anyone to hold your finances for you while you wait for returns. If you have little knowledge about investing, arm yourself with the necessary information and relevant details.
Who are the usual targets?
- Information seekers of a new investment
- Potential investors reliant to word of mouth
- Senior citizens
- Widows / widowers
Three Common Tactics of Con Artists
Declaring there’s a limited supply, creating a misleading sense of urgency
Source Credibility Tactic
Claiming credibility by pretending to be accredited with a reliable company
Phantom Riches Tactic
Luring investors with the false possibility of attaining a huge amount of returns
The ultimate key to safeguard your hard-earned money is to be vigilant with your transactions. If you are in doubt of making investment, visit the offices of some established companies and talk to their professional financial advisors. Importantly, do not hesitate to seek help from the government for possible fraud cases.