You’ve worked hard for your money, and the last people on Earth who deserve it are scammers. You won’t have to look for them; they, oftentimes, look for you. I’ve noticed that people usually fall prey to scams when they’re financially desperate.
Desperate times can lead you to make stupid decisions. An opportunity comes along that seems like it’s going to solve most, if not all, of your financial problems. Of course, you want in because you’re tired of struggling financially, and the opportunity is a solution you’ve been waiting for years.
I know what that feels like. I almost fell for a few scams when I struggled to find a job and was down to my last few hundred dollars.
My experience showed me that most scams have the same patterns.
Cautions
Don’t get starry-eyed and be in a rush to part with your money. Scammers leave clues, and you’ll do yourself a massive favour by being scrupulous.
Pay Attention to Red Flags
When somebody shows you who they are, believe them. A person and an organisation will reveal red flags about themselves when you first become acquainted with them. It’s up to you to dig deeper or ignore the red flags.
I always probe deeper. You never know how significant a warning sign about a person is. But I wasn’t always like that. With the one scam I almost invested my money in, the authorities closed the company’s Texas branch. They defended themselves to potential investors by saying that they reimbursed all the investors.
That sounds like a plausible justification, but why were they closed by the authorities? That’s the part that I, and many other investors at the presentation, didn’t ask.
When Something is Too Good to be True…
As the old adage goes, ‘When something is too good to be true, it usually is.’ That still applies, yet many of us ignore it.
With this same company, they promised high returns—1 percent every day. How were they able to provide that? They said that they developed a trading algorithm that could outperform the market.
Nonsense.
If their algorithm could really do that, they wouldn’t need anybody else’s money. They could just compound their money and make a fortune.
Bigger Doesn’t Mean it’s Legit
Some scams have spread their poison internationally. They usually start locally and their popularity leads them to desperate people in third-world countries. The scam I almost fell for was in various countries, including first-world ones.
The scammers will present their organisation as a legitimate operation because many people around the world have invested in it. That certainly seems like it has credibility. And the scammer will try to convince you that you would be a fool for not investing in it.
Just keep in mind that many people are fools, and you don’t want to be one of them.
Limited-Time Offer
Scammers want your money immediately. They don’t want you to thoroughly consider the investment they’re proposing because you may find holes in it. That’s one of the reasons they rush you to invest by making it seem like the investment is only for a limited period.
Ask yourself, If an investment is legit and lucrative, why would somebody offer it for a limited time? Surely, they would want to make it available forever to optimise profits?
You need time to analyse every investment, and anyone pressuring you to invest is probably not looking out for your best interests.
Upfront Payment
Tune in carefully to the words that people use when they want you to invest in their products or services. A payment is different from an investment.
Many scammers will request that you make an upfront payment before they can sign you up or begin the investment process. That is a payment and not an investment. You will never get that money back.
You should never have to pay for administrative costs as that’s paying somebody to do their job. That is not your responsibility.
Be on high alert if somebody requests an upfront payment from you. Don’t be surprised if there are more payment requests later. They lure you in with the first payment, and you feel obliged to make more payments because you want to complete the process.
Office Locations
If a company does not have a physical office location, I wouldn’t need to consider investing with them. I would be wary of brokers located in the Caribbean and tropical islands. That doesn’t mean all of them are scammers, but many have proved to have a bad reputation.
The duration of their operations is also important. A company that moves around often or has not operated for longer than 10 years would make me think twice about investing with them.
Industries
Regardless of the industry that you want to invest in, ask yourself if that company offers a product or a service. Some scammers will try to make it seem as if the packages in their pyramid scheme are a product.
What do their packages offer? It’s usually some type of membership. They’ll have the basic, VIP and Platinum packages. The packages will contain a voucher, which is not a regular voucher that you can redeem at a store. You use the voucher to present it to a new member that you sign up. Or you can use the voucher for a product/service that they plan to introduce, which they never do.
In my experience, some of the most prominent scams were from the cryptocurrency, foreign exchange trading and dating industries. That doesn’t mean that all investments in these industries are bogus, but I would research extensively any investment in these particular industries.
Final Thoughts
With any investment, make sure to do your due diligence. You want to be convinced that you’ve made the right decision with rational thinking that’s not rushed.
If you need more time to make sure that you’re making the correct decision, take it. You, obviously, don’t want to dawdle for extended periods. But you have to eventually make a decision, whatever it is.
Don’t be afraid of asking people for advice. Speaking to various people to get their take on a potential investment provides you with different perspectives. They may show you a way to look at an investment in a manner you had not considered.
Remember to ensure that the company you want to invest in offers a product or a service and not just some silly digital package that’s basically like buying air.
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