Everyone is interested in making more money, especially when it is an easy, sure thing. Investment scams depend upon this. So, how can you protect yourself or a loved one from being the victim of investment scams? Here are a few crucial tips to help you avoid investment fraud.
1. If it sounds too good to be true, it probably is. Be careful of companies that promise huge returns for practically nothing. Be careful too about companies that promise a sure thing. Every investment comes with risks. A ’sure thing’ is likely a fraud.
2. Be careful about companies that try to rush you. If the company you are looking to invest with tries to hurry you to decide, go with another company. Frauds will often press for a quick decision. If you have to give a final answer now, say no.
3. Be careful about freebies. Avoid accepting “free” items. Companies can use these things later as leverage to guilt you into an investment. It’s easier to walk away without facing theses guilt tactics.
4. Check credentials. Legitimate investment advisers must register with the FINRA (Financial Industry Regulatory Authority) and the SEC (Securities and Exchange Commission). One website that can help you verify credentials is www.saveandinvest.org.
5. Avoid the first fraud. The people behind ruses are surprisingly well organized. If you fall prey to one fraud, you will likely find yourself overwhelmed with other investment offers (all scams). Be cautious to avoid the first fraud, or it won’t be the last time you are targeted.
Before investing in anything, do your homework. Anyone can fall prey to investment scams, but the more informed you are about companies and investment fraud “red flags,” the better prepared you will be to protect yourself and your family from investment fraud.
