5 Ways to Spot Investment Scams

There is always an element of risk versus reward with an investment. You are never guaranteed to get all your money back.

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.

1) Making Promises

When selling anything, it is unlawful to make such claims and deliberately mislead consumers. As such, promises and guarantees are a big, fat red flag. Run in the opposite direction.

If somebody is offering you a deal with low risks but very high rewards, this is a big red flag that they are a fraud. When something sounds too good to be true, it usually is.

2) Low Risk, High Reward

3) Background Information

Most scammers will pose as esteemed businesspersons, but their background should quickly expose them as fraudulent. We recommend doing an internet search on the person and their offer before investing in anything.

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.

4) Pushy Salesperson

5) Complicated Explanations

Precious metals, foreign currency exchange, cryptocurrencies, and penny stocks can be very confusing, and therefore you should be especially on your guard if you're looking into any of these types of investments.

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