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HOW TO IDENTIFY AND SPOT AN INVESTMENT SCAM AROUND YOU

A lot of investment scam now exists around us and each one of us like the idea of investing and making some returns.  It is said that each year, an estimated £1.2bn Pounds is lost to investment scam. Everybody hopes to find a great investment, but nobody wants to be the victim of scam. Unfortunately, the more glittery the investment offer the greater the returns and this is what is promise to many victims who have been involve in one form of scam or the other. Here I will tell you how to identify one and avoid involving self.

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What is an investment?

You may have heard about an investment, but what is really an investment and how do you relate it in a simple grammar. Well, I will tell you that an investment is an asset or item that is purchase with the hope that will generate income or will appreciate in the future. In economic sense, an investment is the purchase of goods that are consumed today but are used in the future to create wealth. In finance, the benefit from investment is called a return. Investment generally results in acquiring an asset, also called an investment.

What is then an investment scam?

Then what do you understand as an investment scam? Investment scams traditional resided in confidence tricks, where an individual would misrepresent themselves as someone with skills or authority so as to make you part with your fund.

Here is some of the likely investment scam you may see around you. Please check out their full meaning as you click on them. Ponzi scheme, Sump and Dump, Off Shore Investing, Prime Bank, etc.

How to identify an investment scam

Identifying an investment scam can be so easy if you have been a victim of an investment scam earlier before. But it’s not that easy to identify one if you are not careful and know how their mode of fake operations works. The following will help you identify some investment scam.

 If The Investment Promises So Much, Please Run

If an investment promises so much that it feels like a dream, it’s likely to be a scam. Please look twice, or even twice, if the plan or investment promises results or guarantees double-digit returns. Every investment involves risk so be careful. Legitimate sales won’t promise you the moon or guarantee phantom riches you will likely never see. Watch before you leap, if an offer feels to good to be true, it probably is.

Don’t Deceive By Appearance 

When someone approaches you for an investment and you know it’s a scam, don’t be deceive by his good looks and fluent language. If it’s a scam, it’s a scam. Don’t put a lot of weight in fancy titles and other signs of worldly success when you are evaluating someone offering you an investment opportunity. Most people trying to pass off scams look good and walk tall, coming up to you to fall for their tricks. Instead, verify the person’s credentials before making a move.

Don’t Be Force to Make Decision

Please don’t be forced to make a decision. Those trying to lure you into the investment scam will always try to force you to fall into their tricks. So keep your ear out for word like “limited offer” or “act now” threats. Don’t be intimidated by anyone now-or-never rhetoric. Any time-limited threats should be viewed by you as red flags, signaling a potential scam. Remember that legitimate investments do not disappear overnight, so if that is the line, head in the other direction.

Likewise, don’t let anyone make you feel committed or force you to invest because of free gifts they pass out. Gifts are gifts, and you have every right to insist on more time to consider.

Beware Of Inside Information

In identifying a fake investment, you should beware of any inside link. if anyone coming to you for an investment and claims he has special connections or inside information that is not available to others, please take a step back. It is against the law to make trades based on insider information that is unavailable to the general public.

Scammers sometimes lure investors by offering them exclusive membership in an investment firm or an investment circle of active investors. In order to identify and spot and investment scam, you need to be educated about fraudulent tactics and carefully investigate the opportunities out there before jumping on them.

If They Tell You to Be Silent

To identify an investment that is a scam, you will be force or entails not to tell anyone. The scammer has a way of convincing you not to tell anyone until the said deal mature. This is a lie a and a scammer tool bag to rid you of your fund and run far away before you can think of alerting the police or any close family members, friends or relatives

My advice is that don’t attempt to carry out an invest from your home to another country. You should always ask from other friends or family members when someone come knocking with any investment opportunities.

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