An opportunity that invites you to put your money in a questionable investment is a potential investment scam. Usually, the investment does not exist and you end up losing all your money.
The offer usually seems lucrative (pretty much like Spectrum Specials), which attracts you to invest your money without thinking straight. The result – you end up losing the money and the promoters are hard to catch.
Stay safe by watching out for these common investment scams that can cause a big loss for you.
1: Advance Fee
In this type of scam, the victim is persuaded to pay the amount upfront for taking advantage of a promising return. The scammer disappears after they receive the money.
Often, the advance fee scammers target investors who have already lost money in a risky investment. They offer the investor a chance to recover their lost wealth. But in exchange for a substantial profit, the investor must pay a refundable deposit which isn’t really refundable.
2: Social Media Scam
Social media frauds are everywhere. Con artists have been using social channels for promoting fraudulent investment schemes for a long time. They create an illusion of common interest to develop an emotional connection with the victim.
The fraudster creates a fake social media account, email address, and a link to a scam website. The photos and videos shared to make the investment appear legitimate. You will have difficulty identifying these fraudsters on social media, which is a sign you…