subject: Avoiding An Investment Scam [print this page] There are many people out there looking to scam people. Therefore it is always important to keep an eye out to make sure it doesnt happen to you, whether it is protecting against a computer virus or making sure you arent the victim to an investment scam.
Everyone wants to make a quick buck if they can, and some use this opportunity to offer investments to people offering quick or easy money. It is therefore very important to be sure of an investment schemes credentials before investing your hard earned money.
There are certain signs you should look out for. Any scheme that guarantees a big return is one to be suspicious of. A guaranteed return just isnt possible as no investment is a certain success.
It is important to fully understand any investment product you are entering into. If you dont understand then ask. A genuine investment manager will be happy to answer any questions, no matter how silly they may seem to experienced investors; dont be worried about sounding like you dont know what you are talking about. If they seem to get agitated or lose confidence in their own answers when questioned, it is probably a bad sign. Some will try to make things seem confusing so you dont question them. A lack of information is a sign of a scam. Anything you are unsure of, ask.
Some scammers employ high pressure tactics to rush you into a decision. Avoid this at all costs. If you are unsure take your time, and say you will get back to them if you must. If they say it has to be now or never then tell them you are not interested.
It is crucial that you know what you are investing in. If an investment scheme claims to have a positive track record then make sure there is evidence to support this. It is a good idea to contact other investors who have used it in the past. Do some other research as well, for example look online. If they have been successful and people have benefited you may well find information about this. Similarly, if they have scammed people they are likely to have commented about it on blogs or forums. It is also wise to research schemes of a similar nature. For one thing, if it is a scam they may have changed the name or changed certain aspects to try to avoid detection. Most schemes will have something similar through another investment company, whether genuine or not. If you are using an investment company or partaking in investment trusts then make sure the company is registered.
Always urge on the side of caution. If in any doubt at all dont risk your money. You should never rush into a decision. And if the investment company is trying to force you into rushing then they probably cant be trusted.
It may sound obvious, but use common sense. If your gut feeling says this may not be trustworthy, walk away, and dont deal with someone who does not seem professional.
