The Standard of living appears to be getting worse with each passing day. No good job employment, bills here and there calling for our attention, family members seeking financial assistance from us etc the pressure keeps getting worse.
As individuals, saddled with all of these, there is this intense desire to find freedom speedily. In our quest to find this relief, we can easily fall prey to various investment scams looting the internet.
Just yesterday, my friend and coursemate opened a link in a message supposedly sent by MTN and the rest became history. You can pause to ask yourself if these things do happen. Well, the answer is a big YES.
The issue of investment scams can be handled if people can spot the red flags, even though they may appear so real and irresistible.
In this article, I will be showing you how you can protect yourself from these investment scams no matter how unharmful they may seem. Do not think you can't become a victim, I have seen financially intelligent people fall victim.
What are Investment Scams?
An investment scam is a trick fraudsters can use to trick you into committing your money to promising projects(real estate, insurance policies and corporations) that in reality do not exist. A popular example is the Ponzi investment Scheme.
You are misled into believing there would be high profits. The tricksters do this by using false information for their monetary gains to your detriment if you fall prey.
How To Avoid these Investment Scams.
Know that there is no such thing as a no-risk investment
Beware of investments that promise unreasonably huge returns with little or no risks. They also promise to yield these returns within a short period. Good things take time and are hard to produce, there are no overnight successes. The higher the returns, the larger the risks involved.
Do your research
Never think that these fraudsters would tell you everything there is to it. Go the extra mile to do your digging. Find out the credibility of the salesperson selling you the idea. Does he/ she have a clean track record?
Even if you follow them on Social Media or know them personally, do not buy the idea without investigating on your own what it entails. Verify their credentials.
Legal investment professionals are registered with the Financial Industry Regulatory Authority, the Securities and Exchange Commission or your State Securities or Financial regulators.
If you are Pressured, Walk away.
Most investment scams salesperson will not give you time to make your decision. They often fix a limited time to invest and are in haste for you to make immediate payments. If they are legitimate, they would give you the time to analyze what they have to offer.
Be wary of free bonuses😧
Fraudsters often lure potential investors in with free seminars, free lunches and the like.
They know human beings are tailored to wanting to return a favour, hence they use that as an advantage knowing that you are most likely to invest in their products if they do so.
Even if you accept the favours, make sure you understand the algorithm of the investment and all
Its associated costs. Do not allow the gifts to bias your decisions.
Further Indicators
–Receiving unrequested calls, text messages, emails etc.
–Fake celebrity endorsements I.e making use of popular celebrities on their social media pages or websites who might not be aware.
– Telling you to deposit money into an account different from the supposed company name. They claim it's for security reasons.