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Top 10 Investment Fraud Scam Signs

Criminals are great artists. They have the skills, knowledge, and strategies to ensure that your hard-earned money will soon be housed on their accounts. These individuals are also more careful during difficult economic times. Because they sense the desperation and frustration of people who are in dire need of money, they are alarmed who are the most susceptible and vulnerable people in the market. Amusingly, the studies of the Department of Justice show that individuals that have a college degree are the most inclined to be scammed.

Very tempting solicitations may be performed via direct mail like stock spam, over the phone, or at times printed in local newspapers and magazines. Scammers also identify the potential of the World Wide Web. Similar scams done by phone or via mail can now be seen on the cyberspace, and technological advancements are the leading new methods to commit misdeed or transgression against consumers.

Signs of Investment Fraud

Attentiveness is the chief key to prevention and the best step to protect your life savings. If you come across with any of the following indicators, then exercise extra caution and don’t spend any of your capital until you are confident that the offer is legitimate.

  1. High Profit Guarantee – The profits a con artist puts forward are typically hefty to interest you and make you eager to invest, but not very large so you’ll not feel skeptical. “Pump-and-dump” and ponzi schemes are the most popular stock frauds. The guarantee of astonishing earnings through high return investment is a clear sign that the offer should be disregarded. In general, if you stumble upon an investment proposal that seems too good to be true, move on, most likely it is.
  2. Very Low Risk – Many crooks are so deliberate in telling you that there is no risk involved in their offer, that their investment is a surefire way to success. However, many simply affirm very low risk. Clearly, the last thing that the scammer would like you to think about is losing your funds. Say no to the offer when the con man becomes aggressive or offended when you raise issues about investment risks.
  3. Urgency – Obviously, there are convincing reasons why it is crucial to house your money in profitable investments now. Urgency is essential to a con man. He craves for your money before you even consider evaluating his references. Always be diligent since swindlers will never encourage you to think. In investing, urgency is a big no-no!
  4. Confidence – Scammers really sound very confident about the money you’ll be generating, so you’ll also feel confident of handing them your savings. They act as if they are doing you a life-changing favor by presenting you with a lucrative investment opportunity.
  5. Well Groomed – Many swindlers look first class and really successful. With the use of money from their past scams, they rent lavish offices and get the services of an interior designer as well as professional-sounding office receptionist, making the place appear like a company of good reputation. Their websites also look good, aside from the fact that they participate in local civic groups, make contributions to charities, and in general act as a good citizen.
  6. Overflowing Referrals – One of the most popular con man schemes integrates recompensing quick, large earnings to the first few investors, from the money of other people, understanding that they will possibly suggest the investments to their friends, relatives, and even mere acquaintances. Thus, new victims come to the crooks.
  7. Intricate Investments – The con man likes to put forward unknown products in the market. These items may be exploratory inventions or what appears like a good investment vehicle. Private placements, offshore investments, gold bullion, and even investments associated to the foreign exchange are the favorites. Take advantage of third party sources so you’ll become familiar with your chosen investment platform.
  8. Ask No More – The first sign of fraud is the con man’s resistance to your questions. Instead of allowing you to pose your inquiries, he keeps on bugging you with questions to prevent you from throwing one.
  9. No Reviews Please – An investment advice that the crooks will give you is to make your own decision and don’t depend on your lawyer or any other person so no third-party reviews on the investment offer will be made.
  10. No to Writing – Fraudulent investments don’t come with contracts and agreements in writing most of the time. Many scam artists are unwilling to put the transaction in writing that may serve as evidence when they get caught up in a fraud trial.

Remember that there are strategies to protect yourself from fraudulent transactions. Review the person’s profile and the company that you’ll transact with. Cautiously assess the investment offer and make a list of questions that should be answered by the party offering the investment. Keep on monitoring any asset you decide to procure. At times, your intuition will tell you what is safe and not.

Have you been scammed? Share your experience in our Stock Spam forum.

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