Each year, thousands of people end up losing millions of their hard-earned money due to investment scams. Advances in digital communication and the widespread use of the internet means that these kinds of scams are becoming more and more prevalent and harder to identify. The purpose of these scams is to get unsuspecting people to part with their cash. On the surface, these investment schemes appear to be fully legitimate, as they come with a proper website, marketing material, testimonials and other such relevant features. But, this is simply because these scammers put a lot of effort into devising these scams in order to attract as many victims as possible.
As a matter of fact, some of the investment scams out there have become so sophisticated and convincing that even professional investors end up falling for them. Does this mean that the only way to stay safe from such scams is by not investing online at all? With the numerous opportunities available, it can be difficult to resist and you don’t want to let some good ones slip by. After all, there are some sound and viable investment schemes that have helped people in making high returns. So, what should you do to protect yourself?
If you don’t want to be a victim of one of the various investment scams out there, there are some important precautions that you should take. What are they? Let’s take a look below:
- Don’t fall for promises of very high returns
One of the first things that most investment scams do is that they promise to give you extremely high returns on investment, if you purchase a certain stock or invest in their product or something similar. An important thing that you should bear in mind is that if the return being promised is higher than what other similar investments in the market provide, then it is definitely a scam. The problem with investment scams is that they are hard to distinguish because scammers use contact information and templates that look very real.
As a matter of fact, it order to prove to you that they are legitimate, they even get ahold of your personal information. Yes, there are some profitable opportunities out there that can and do provide quick profits, but you should remember that the higher the return promised, the higher the chances of you losing everything. In addition, keep an eye on the terminology being used. If you are being promised ‘guaranteed’ returns, it is just another investment scam because it is just not possible for anyone to give a guarantee.
- Check their registration status
There are a number of regulatory authorities and agencies that specialize in monitoring and regulating businesses in order to help people in avoiding falling pretty to business or investment scams. When you come across an investment opportunity, you should ensure that it is properly registered and licensed and has all the necessary paperwork. Make sure there is proper information available about the company and not just vague marketing material and a couple of fake testimonials because that’s how investment scams happen.
- Be wary of social media postings and suspicious emails
Human beings are social creatures and this fact has been reemphasized with the success of social networks like Facebook and Instagram. While the popularity of these websites may have its benefits, it is not without some cons. Cybercriminals obviously go where the numbers are and in this case, popular social media platforms are the target. When you use these social networks, you will come across ads, posts and banners about money-making investment opportunities. This is just a tactic to get you to invest your money, which will then disappear. Likewise, if you are receiving unsolicited emails from unknown senders or websites you haven’t subscribed to and they are talking about some new and upcoming investment opportunity, it doesn’t mean you pay heed to them.
Some of these scammers try to convince people to invest by advertising that someone renowned or famous is also doing the same. These scammers will try to make their pitch come off as real news, but you should take all of this with a grain of salt. Until or unless the individual himself confirms that they have made an investment, you should stay away from them altogether because these are also modern investment scams.
- Don’t hesitate in asking questions and get straight answers
When you want to know more about a financial investment opportunity or scheme, you shouldn’t hesitate and ask as many questions as you want. Don’t be afraid to dig around for information. You can get in touch with the company directly and ask them to provide straight answers about the investment. Once again, don’t accept vague information that doesn’t really tell you anything. Ask for clear numbers and figures, along with some logic and reasoning behind it. For instance, if an investment is offering you a return of 80%, ask them how this value will be generated. If you don’t understand the answers you receive, you can get in touch with verified financial experts and ask them for help in this regard.
- Be careful of free gifts
Sometimes, the biggest way scammers trap people in investment scams is by giving them a free gift to go with the scheme they are selling. This makes investors feel as if they are being cared for and they will be more open to trusting a company that’s actually offering you something even before you have invested with them. Sometimes, legitimate investment opportunities also come with perks, but you still need to do your research before you invest your money anywhere.
The key to remember is that investment scams have become too common these days and you have to take all necessary precautions to stay safe. Recovery solutions like Money-back can be used for getting your investment back in case you are unable to avoid being scammed. They are easy to find and can help you in getting your money back.