How to spot an investment scam
Have you fallen victim to an investment scam? Do you know anyone who has lost money in an investment that turned out to be a scam?
What is an investment scam?
This is a dishonest, enticing and convincing scheme either by an individual or a company that offers a fake opportunity to make a profit after you hand over a sum of money.
Types of investment scams
1.A fabricated investment that doesn’t exist. Investing in the air.
2.The investment exists but the scammer takes the money and instead of investing, they squander the money.
3.The scammer pretends they’re representing a legitimate and trusted investment group, but they’re lying.
How to spot a scam
1.“Everyone is doing it” sale pitch Be wary of a sales pitch that focuses on how many people have invested, without telling why the product is good.
2.Do not invest in a project just because you will be rewarded because of the number of people in your social circles or groups you will mobilize to join.
3.An investment scheme that contacts you out of the blues and for as long as you can remember you have never inquired about such an investment.
4.Pressure into making a rushed decision. Avoid any investment that does not provide room for you to conduct due diligence and they rush you into signing up.
5.Avoid “too good to be true offers”
6.When they ask you to keep the investment quiet
7.Unregulated investment — any investment that does not fall under any regulated or
The registered investment category is majorly a scam.
Tips on protecting yourself from scam
- “Never invest in a business you cannot understand”, Warren Buffett
2.If you are not sure about something, then don’t commit until you are 100% comfortable
3.Caution is the best defense. It is crucial to undertake proper research and due diligence before handing over your money.
