However, some investment opportunities are straight-up scams. Ponzi schemes and other investment fraud is up 70% since the beginning of the Covid-19 pandemic.
So, how does one differentiate a perfectly legitimate investment from a conniving scam? Keep reading to find out 5 helpful tips to stay safe from criminal fraudsters.
For example, they might say that you will “undoubtedly make a profit” by investing with them. Or you may have a company tell you that “all our investments are risk-free.” Not possible.
A perfect example of this is the Ponzi scheme. Ponzi schemes (such as the infamous one run by Bernie Madoff) offer “guarantees” of abnormally high returns (20% or more).
See if you can seek out any credentials that prove their legitimacy.If you can’t find any information, this is a very good indicator that the investment deal is a scam.
Fraudsters are usually very pushy and try to rush you into making a rash decision. They tell you you have to act “immediately” or else you’ll lose out on the deal.