Thousands of people lose millions to investment scams each year. The Internet has become one of the most popular tools used to commit fraud and criminals are becoming more and more sophisticated with their hacking techniques. Thankfully, there are some warning signs, which you can use to avoid falling victim to scammers.

Investment scams aim to get unsuspecting people to hand over money. They can seem perfectly legitimate, appearing knowledgeable with websites, testimonials and marketing material. The most famous kind of investment scam is the Ponzi Scheme, where money is collected from new investors to pay previous investors.

Eventually, the money owed is more than the money being collected and the scheme collapses, leaving all the investors out of pocket. Today, due to the internet and digital communications, investment scams can be much more complex. 

Warning Signs

To check if an investment opportunity is a scam, look at the following warning signs:

  1. You get unsolicited approaches or offers by phone call, text message, email, or a person physically knocking on your door;
  2. The person who contacted you did not provide clear answers to your questions;
  3. You get persistent phone calls from the operator to induce you to invest (so-called Cold Calling);
  4. You are forced to make a quick decision;
  5. The firm or operator doesn’t allow you to call them back, or you are given with only a mobile phone number for contacting them;
  6. The information provided is not confirmed on the…

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