Investment scams have been around for quite some time and despite the investment red flags, many still fall prey. Some of the most dangerous investments are the ones that appear promising on the surface.
While nobody can predict with certainty how any investment will perform in the future, there are a few red flags to watch out for.
1. Get 50% ROI in 10 days
The most common of all investment warning signs is the promise of returns that are too good to be true. High promises of returns in short time frames that will make you rich are a sure sign of an investment scam.
It can take less than 10 days to go into overnight debt. Stay on guard and avoid being drawn into these get-rich-quick schemes.
2. There’s a shortage – act now or lose out!
A pushy salesperson is never a good sign. If someone is pressuring you to invest, chances are there’s something going wrong and they’re looking for someone’s money to help them fix it.
This type of sales pitch is used to create a false sense of urgency. If it’s a legitimate deal, it’ll be there tomorrow.
3. This investment has guaranteed high returns – no risk!
There’s no such thing. Be suspicious of anyone who guarantees that an investment will perform a certain way. All investments carry some level of risk – which means you may lose some money.
The higher the returns, the higher the risk. know the risk level you are taking and invest only what you are willing and can afford to lose.
4. Great investment opportunity – Mr A can’t be wrong!
Fraudsters have been known to work their way into close communities and befriend members in order to sell them fraudulent investment products. This pitch relies on the trust you place in your friends. The truth is that credibility can be stretched and faked.
Watch out for this sneaky greed factor since fraudsters often pay out profits to early investors who unwittingly convince others to get on the bandwagon.
5. I’ll double your money in a week – just refer two people
Unsolicited investment offers are scams almost 100% of the time. Any offer that comes to you from someone that you don’t already know should be avoided no matter how promising it looks or sounds.
If the investment is so profitable, why do the investment promoters need to recruit YOU out of the blue to refer more people?
6. If you are interested – We’ll add you to the WhatsApp group
Promoters utilizing this tactic are trying to convince you that he or she has access to inside information known only to a select few who are said to be making a lot of money.
There’s no secret formula to investing successfully. Many investment scams involve unlicensed individuals selling unverified insider tips.
Long-term investing can be a great way to make money, but it’s also risky. Stay on guard and avoid becoming drawn into these red flags.
The best investing strategy is a slow-but-steady one. If an investment seems like it’s too good to be true, it probably is. Look for the warning signs. Ask questions and research every investment opportunity thoroughly before you invest. Choose a trusted investment partner like www.bravewood.ng for safe investment options to help you build long-term wealth.
What are the other popular investment lines we should all watch out for?