subject: 2 Basic Tips To Avoid An Investment Scam [print this page] Nowadays due to the massive growth of internet technologies and thus the different internet investment projects, investors have to be really careful in order not to waste all their money in various scams or tricks. There were some basic lessons left to be studied after the December of 2008, when the audience finally got to know how Bernard Madoff had taken money from charities, companies, banks in an illegal ways of course. And it was billions of dollars.
One of the best protection from such individuals as Madoff and others as him is to get to the notion how they work and to keep in one's mind an old proverb. If it is very nice to be true, perhaps it is. Don't be ever tempted by the opportunity of huge profits and it will help to get good success.
Each person is fond of making money. The scammers certainly now about such a weakness of people and they will make everything that possible to take the advantage of people's greed and illiteracy. Suppose a financial consultant assumes that there's not a risk, in this case doesn't have to get engaged.
A big wonder about the failure of Madoff was the fact that he rarely witnessed any losses. Barely one could repeat the returns of him.
Tip: Just remember that any kind of legal Investment assumes a permanent inconstancy and risk.
Black Box Money Management
If a manager tells you that "the particulars are kept from others" you should be on the guard due to these words of him. If he denies to answer to any your questions or behave like a fraud, it's high time you understood something wrong happens.
Tip: If no reference is given to you how the mechanism of investment works in that very company, go away.
Religious, ethnic and social groups are the most fertile environments in which to scam large numbers of people. Bernard Madoff targeted Jewish individuals and organizations, drawing them in at least in some measure because of a shared faith. Hucksters know that if they can gain trust within a group, the confidence game will work. This can take a while to set up but the payoffs will be huge.
Different groups that are connected with religion, social strata are the prolific basis for frauding millions of people. Bernard Madoff was concerned mostly about Jewish communities, attracting them because the similarity of the shared faith. Scammers are all aware about the influence of trust in the group and it will work. It takes a little time, but the outcome will be immense!
