Investment scams are a big problem. With so many options for investment and so many people now interested in investing their money, how can you tell which are scams and which ones are legitimate investments?
Red flags of investment scams:
- Promising high returns on a no-risk investment.
- The investment opportunity comes out of the blue
- On the flip side, you’ve been specially chosen to invest.
- They have a special or secret algorithm designed to guarantee and maximize profits
- They immediately pressure you into investing a large sum of money
- They are pushing you to make a decision quickly before they are gone or the “opportunity is missed”
- They always have an excuse for why you cannot withdraw your funds
- They continue to ask for more money to fund the account
- They say to release your funds you must reach a certain threshold or pay a certain amount in fees or taxes
- They are suddenly unreachable, usually after a request to withdraw funds or if the scammer feels you’re onto their scheme.
The internet is full of opportunities for investment, but you want to make sure who you’re investing with is legitimate and will have your best interests in mind.
Tips for a safe investment:
- Never invest money you can’t afford to lose.
- Be wary of how much money you are being offered.
- Find out who your contact is and how to reach him or her. You should be able to talk to them directly.
- Never send cash or pre-paid cards to anyone.
- Never give out personal information like your address, telephone number, driver’s license number, or social security number.
- Look into the company offering the investment. Does it have a good reputation? Are its representatives upfront about who they are and what you can expect?
- Ask for written information about the investment and be sure you understand it before you make a decision.
- Never put all of your eggs in one basket. Spread your investments around.
- Double-check everything before signing anything and don’t be afraid to ask questions!
- Trust your instincts. If it feels wrong, it probably is.