How to Spot Investment Scams and Avoid Them

Unfortunately, a lot of people lose thousands of dollars in investment scams every year. You may think to yourself; how could they fall for that? Surely it is obvious that it is a scam. The truth is, investment scams are now very sophisticated and they can happen to anyone. They look legitimate and can catch you off guard.

The good news is there are some signs that an investment may be a scam. You just need to know what they are so that you can identify them. So, here are a few ways you can spot an investment scam and avoid them becoming a problem for you.

Be Aware of Phantom Riches

You know what they say, if something seems too good to be true, it probably is. If you see an investment opportunity that guarantees a high level of success and huge profits, this is often referred to as phantom riches. It gains this name because it is unlikely that you will ever see this money and it could be a scam. Remember that every investment involves risk and there can be no guaranteed pay-out promises.

Do Not Feel Pressured

If an investment opportunity comes your way, do not feel obligated to take it. Often, scams are rushed and try to pounce on you so that you make a quick decision. Do not fall for this or feel pressured to make a quick decision. Take your time, think about it and weigh up your options. Even if there are talks about a ‘special deal’ just for you or something is thrown in for free, pause and think about the investment first.

If you do think that you have fallen for a scam, Payback can offer binary options scam help. They can look into the scam and see if they can recover the money for you.

You Receive Unexpected Contact

If you are wanting to make an investment, this could involve you searching for them by yourself. Sure, you may ask for help from companies. But you should be aware that they are going to contact you. If you suddenly receive contact from someone saying they are going to help with investments and you do not know who they are, this could be a scam.

Make sure that you ignore any unsolicited telephone calls and emails. They can be very convincing and make out they want to help you. However, they are experienced in tricking people and this could be another scam. Therefore, if you are not expecting contact from them, always assume that it is a scam.

No Clear Contact Details

Always do your research before you choose investments. If you are checking out companies that you have never worked with before, always take a close look at their website. You want to make sure that they are legally registered and there is not anything suspicious. For example, a lot of fraudulent companies do not have sufficient contact details. They might have a mobile number but no email address or location address listed.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes