Risky Business

Any type of investing carries a risk, and usually it’s the ones that promise the best returns that carry the highest risk. Unfortunately there are many individuals who have fallen victim to investment scams carried out by people who make a living conning others. Here are some of the things to watch out for:

Making money quick

Emails or advertisements about making money very quickly do attract a lot of attention. Although initially most people will think it sounds too good to be true they will usually read more. The scammer will show you so called ‘real cases’ of people who have invested and made lots of money. You may watch a video interview with these people but beware, this is staged and all you are watching is a performance by actors.

Foreign investments

Please understand, we are not saying you should never invest in a foreign company simply that extra caution should be taken. You will need to do a lot of homework if considering a foreign investment as they will not come under the UK’s jurisdiction. You should also ask yourself why they are looking for investment from someone in the UK rather than their own country.

High pressure tactics

Anyone who says you have to decide the same day or you will lose the opportunity may as well have a danger light flashing on their head! Any investment opportunity that is an authentic and legitimate one will give you the time needed to check it out before making a decision.

Low risk, no risk or a guarantee

Whenever you hear any of the above, be warned, as every investment carries a risk, there are no guarantees. If there were guarantees, why would they be letting everyone else get a piece of it?

Techno Talk

When investments are being sold to you by someone, or something (email, advert) that uses sophisticated language that you don’t understand you should think twice. In order to intimidate you the fraudster will try and complicate things so you don’t look any deeper. Fancy phraseology is usually a cover up. If you don’t understand it don’t invest in it or dig deeper and ask more questions until you do understand it.

Forewarned is forearmed so due diligence is essential when investing. Do your research, investigate the investment opportunity and the company behind it and take professional advice. It’s easy to invest in a scam but almost impossible to get your money back.