Top Tips To Identify Investment Fraud Scams

Investment fraud has become one of the most prolific scams used to trick people into handing over their money freely. It is no longer just the domain of the individual con artists either. A recent investigation into ProAssurance showed that entire companies could be culpable for securities fraud. Los Angeles securities fraud lawyers have also highlighted several notable challenges of identifying fraud.

Unfortunately, the internet is merely crawling with an abundance of sketchy scams from alluring work from home scams to investment fraud scams and various others. Staying safe online has become a nagging concern for anyone scouring the web. When hiding behind the facade of a legitimate business, how does one go about identifying and avoiding falling victim to these criminals? Several factors should help you conclude. An acute awareness of the common red flags is the best practice to ensure that you stay safe from financial predation.

Invite A Friend

Real investment opportunities do not require that you bring more people on board. Even a hint that your potential returns are affected by the number of people you sign on to the investment is a clear indicator of a pyramid scheme. This may seem self-evident, and you may be thinking to yourself that such a blatant scheme would never trick you.

The problem is that these types of ‘opportunities’ have become increasingly subversive. It is unlikely that you will initially be asked to refer more people. This detail is often skimmed over and set as more of a footnote, with emphasis cleverly being drawn to hypothetical returns. This brings us to the next point.

The Source Of Supposed Profits

When you start to notice that there is a lot of talk about the amount of profit and dividends you stand to gain, you need to ask crucial questions regarding exactly where that money would be coming from factually. Money can not manifest from a charismatic speech. Do some research on the topic of investment and ascertain whether it is a feasible market. You must also gather information as to how the investment opportunity factors into the industry it caters to if you cannot get clarity from the investment provider that is a clear sign that it is time to walk away.

The Pitch

Genuine investment opportunities will most likely not be sent to you via a random email from some company you have never had dealings with before. These invites can be university ignored. The tone of the pitch says a great deal about the legitimacy of an investment. Real opportunities are overseen and conducted by professional business people who will in a million years never pressure you into an investment. Being pressured during the pitch is another red flag.

Furthermore, a genuine investment opportunity will not be presented by way of spectacle. As mentioned before, charisma in and of itself is something to scrutinise carefully. Proper opportunities sell themself; you do not need to put on a show with a rambunctious figurehead chanting meaningless platitudes about your financial future.

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