During these challenging times, we notice that the number of scam victims has went up as people are inclined to seek for an alternative income in the investment and financial world. While the initiative on this can be helpful when you are trying to add another income stream, we would also like to remind you about the few elements of an investment scam to prevent you from falling into one.
First of all, scammers tend to impersonate a legitimate entity with names that is close the entity. For an example, the name of the website. Using names that look the same with the legitimate entity at first sight can trick investors thinking that they are actually login to the entity’s website.
Second, the offer of guaranteed returns in short term. Please note that all investments carry risk. Be extra wary if you ever encounter an investment opportunity that claims to guarantee or protect your capital while promising high returns. If it is too good to be true, then it’s most probably not. That might just be one of the gimmicks they are using in order to lure you in.
Another red flag that should be noticed by investors are the ‘limited time only’ investment opportunity. Keep your head clear and do enough due diligence on the respective investment until you understand where is the profit come from. If in doubt, it is safer to walk away with your money than to commit to any investment on impulse.
It is true that investment scams often like to brand themselves as well-established and experienced with multiple winning awards. Some even have the testimonials of ‘satisfied customer’ to shore up their credibility. As all of these can be easily obtained and put online, we suggest investors to confirm the investment entity’s legitimacy by checking out if they are regulated by international or financial authorities.
Take note that scammers often creep in through email, text messages and cold calling out of the blue. Remain calm and alert if there are stranger contacting you all of a sudden. Never disclose any of your personal details or click on any unknown links that are from suspicious source.