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Money Investment - Red Flags That An Investment Opportunity Is A Scam [print this page] The internet is a very powerful that is able to do a lot of good things, but it also can allow someone who doesn't have good intentions to be able to take advantage of others. It doesn't take any effort for someone to set up a website and then go around on message boards telling people that they have found "a great new way to make money!" Before you know it, people have bought into whatever "investment opportunity" that was introduced to them and they end up losing a ton of money. By the time they realize they'd been had, it is usually too late to do anything. This is why you need to make sure that you know what you are getting into before making a huge money investment.
It is virtually impossible to be able to tell the difference from a legit investment opportunity from a scam. But there are several things that should raise a red flag and should tell you that something isn't right here before making a money investment with someone new. There are a great number of investment newsletters that you can find online. The only problem is that sometimes, they are not so independent. Sometimes you might find a newsletter that is touting how much money can be made from a new stock, when they are only mentioning it simply because the company paid them to do so. Other newsletters spread false information, trying to control the market so they themselves can make good money off of their investment deals. Some might even try to drive up prices so they can profit greatly off of the increase price tag on their stock.
Another thing you should be wary of before making a money investment is online message boards. These have become a great tool over the years for investors to share information about stocks they are interested in or other investment opportunities they have found. The problem here is that it is also easy for a scammer to get on a message board and try to get people to buy into their scam.
This next tip should be obvious, but still needs to be said. Due to email being so easy to use, scammers increasingly send out spam about some fraudulent investment they are presenting to the user, hoping to get someone to bite. It goes without saying that you should never make a money investment with someone who contacts you with a supposed "great opportunity". Only deal with those who you have researched and looked into first.
