Avoiding Financial Investment Scams in 6 Steps
- Author Carla Jack
- Published October 14, 2010
- Word count 537
Filtering legitimate financial investment advisors from the confidence tricksters can be quite a daunting task. Take control of your finances and watch out for the following the main steps of avoiding investment scams:
- The 'Set for Life' Promise.
Financial Investment professionals are well aware of the unpredictability of financial markets and how to manage consistent returns. An investor that approaches you with promises of huge payouts that will fix all your financial woes is suspicious at the very least. If it sounds too good to be true it probably is. Trust needs to be earned so resist the urge to invest large amounts from the get-go. Start with conservative investments and build a relationship over time.
- Beware of Time-based Pressure.
Be wary when you are being pressured to make a decision on the spot. The fear of missing out on an opportunity is often manufactured by the swindler himself/herself. Good financial payouts do not happen overnight so neither should good financial planning.
- Make Yourself Familiar with all the Details of the Proposal.
Be especially careful if you are unfamiliar with investment and money management. Intelligence is not a factor here. Many smart people have fallen victim to financial fraud due to skimming over the details instead of actively picking apart the investment process that will be used. If the process cannot be explained in everyday language that you can understand it would be best not to go forward.
- Check the References.
Checking references does not necessarily mean checking client references. All investment brokers need to be licensed. Scam artists often provide overly-technical descriptions whilst skimming over details regarding their legal affiliations. Even if a potential investor supplies a financial regulator registration number you need to go one step further and check their credentials with your region/countries financial regulator.
- Remember that Con Artists are 'People People'.
Con Artists are experts at winning confidence with a combination of great financial jargon and good manners. They are also great at playing on natural human reactions by taking advantage your own politeness. Never feel like you owe someone your time. If you are uncomfortable you are allowed to cut off the communication channels at any given time.
- Stay In the Loop and Keep an Eye out for Suspicious Behaviour.
You may be tempted to leave your investment management to the 'professional' but your money will always be your responsibility. Request frequent reports (at least monthly) and query all the details of your investment. Once again polite behaviour does not pay off. You are entitled to know what is happening with your money. If you feel uncertain of how an investment is going test the waters by trying to withdraw a small amount of the investment. If your payout is being delayed or you start getting vague excuses you may want to reconsider your investment or check this suspicious behaviour to financial regulators/associations.
Financial Investment can be greatly rewarding if you choose an experienced and reliable service provider. There is no quick fix for financial freedom but the old adages remain. Save and invest consistently and cultivate financial discipline. Be vigilant and educate yourself to guard your investments. And lastly, do not let fear or greed become your motivators.
McNamara and Associates provide financial investment advice and tax consultancy services in Dublin Ireland. http://www.personaleconomy.ie
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- SCOFI: Pioneering Venezuela’s Petroleum Industry for Over 65 Years
- To Understand Risk, Start By Asking What You Don’t Know
- How To Make Money On Binance: A Full Guide
- Airbnb Investment 101: Tips for New Hosts in Australia
- Indian Gold Demand Rebounds During Important May Festival
- The Investment Terrain in Crypto, Blockchain, and Web3
- Exploring Bitcoin: Corporate Giants Embrace the Cryptoverse
- The Significance of Static IP Address for Trading
- TYPES OF FOREX REGULATIONS
- Weekly Events: Avalanche & Chainlink Collaboration, CommEx Closure, And More
- Assani Elolo Ronaldo - How Bank Instruments Facilitate Gold Deals
- Crypto News: Mempool Solana Shuts Down, Police Integrate Cardano Into Their Work, WhiteBIT And FC Barcelona Launch New Course
- Is Crypto Entering 2021 Vibes?
- Bitcoin Updates All-Time High In Momentum Amid Its Scarcity
- Analyst Announces Bull Run Start, Cites Stock-to-Flow Strategy
- Weekly Crypto News: Telegram Pays Toncoins, WhiteBIT Is Now TradingView Broker And More
- undetectable banknotes
- Unlocking Financial Success: Why Successful Portfolios LLC is Your Best Advisor
- Are EVs a Threat to the Republic?
- A Deep Look Into Binance: Can It Really Be Trusted?
- Ledger Live - Most Trusted & Secure Wallet - Ledger
- Decoding the Future: Navigating the Crypto Landscape
- Don't Cry for Me General Motors
- Investing in exponential growth stocks: what can you choose
- Leveraging ChatGPT AI for Smarter Stock Market Analysis and Investments
- Shib, Doge, and Pepe Have a New Competitor: The Rise of $FUFU Token
- Unlocking Wealth: The Power of Apartment Syndication in Real Estate Investing
- 6 Reasons to Invest in Bitcoin
- Blockchain and AI Convergence: A New Era of Innovation
- Financial Planning for Small Business Owners: Tips for Success