Fraud isn’t new and can be dated as far back as the 1920s. A con artist named Charles Ponzi defrauded many Americans by promising unbelievable returns from a strange scheme where he was using new investors’ money to pay off existing investors.
This trick was in play for years, from when Bernie Madoff was convicted in 2008 of the famous Ponzi scheme to 2017 when it made over three million Nigerians financially handicap. One thing people realized from this was that not everything that shines is gold.
You might not run into scams like the Ponzi scheme but know that these scams are often sophisticated because fraudsters are very good at what they do. Anyone can be exploited by phoney investment schemes and at the same time, there are some basic measures you can take to reduce the chances of being defrauded.
Don’t Fall for Promise of Very High Returns
Most times, the first thing an investment fraudster will try to do is entice you with lavish returns on certain stock or product. They’ll tell you that when you buy or invest with them, you’ll earn more than any other instrument could offer you. If it’s unreasonably higher than what other investments in the markets offer, it’s most likely a scam. We aren’t saying there aren’t investments out there that will give you high returns but the higher the returns you are promised and the shorter the time, chances of you losing all your money are pretty high.
Be Cautious of High-Pressure Offers
A person who tells you that you must take advantage of a supposedly once in a lifetime opportunity is someone you should be suspicious of. This is a trick con artists use to get you to part with your money. If an offer is right, it’ll happen. So take your time to make an informed decision on.
Ask Plenty of Questions Before You Make Any Investment
“Is this service registered with any financial agency?” “What are the fees?” “How does the company make money?”
Don’t be afraid to dig around for information about an investment opportunity. Ask the company or the person selling it straight questions and make sure you get straight answers from them. If your gut doesn’t align with the answers you want, do your homework. Go further to ask financial experts you or look up information about the company.
Be Wary of Free Gifts
This is often the biggest trap a scammer can set – giving their victim something to make them feel special so they can buy what they’re selling. They feel like when they do you a small favour, you’ll trust them and feel obligated to invest. No matter what you’re offered, don’t get carried away. Make sure you do adequate research on what they’re offering you to avoid investment fraud.
Watch Out for Investing Offers on Social Media
Many scams are being perpetuated online now and on social media. Cybercriminals go where the numbers are and social media isn’t excluded. If you are getting messages on a money-making opportunity, approach it with skepticism and do your research.
While investment fraud is everywhere don’t write off every investment opportunity that comes up as illegal because there are some legitimate, very high return investments out there that can help you grow your wealth, over time. Risevest allows you to invest safely and access global opportunities from an app. Your money is always on your eye and you see everything that happens on your dashboard. Our systems are protected with the same security measures used by top banks around the world.
Get Rise and start investing safely.