Yesterday I shared tips on how to protect yourself from fraudulent work-from-home/business opportunity scams. Today I’m going to cover investment scams.
As Bernie Madoff proved, people want to earn a quick buck so badly that they will believe almost anything. So how do you distinguish the legitimate opportunities from the bad ones? Here are some tips.
Wealth building opportunities
The turbulent financial market has many people looking for alternative investments or money-making opportunities. Keep in mind, alternative investment sellers and so called wealth builders are also looking for you!
Seminars, conferences and free lunches that are loaded with success stories, promises for earning potential and great wealth, and which offer you information on how to invest or successfully operate a business, should be looked at with a critical eye; especially when a considerable investment is concerned.
What you should do when considering a wealth building opportunity:
– Never rush into an investment opportunity. Avoid high pressure pitches that require you to make an investment immediately or risk losing out on an opportunity.
– Speak with current investors of the opportunity and seek the council of unbiased professionals who are not involved.
– Be very critical of dramatic success stories, glowing earning potential and ease-of-return on investment.
– Be cautious of doing business with anyone who is vague, general or reluctant to answer your questions directly.
Ask about the refund policy, full disclosure documentation and whether you are penalized or otherwise impacted by lack of performance.
In summary, the goal of job, career and business opportunity scammers is to separate hard working people from their hard earned money. The variations of scams are endless. The economy and the Internet provide a great platform for scammers to snag anyone desperate enough and seeking additional income.
These scams include people trying to sell you services and products that are unlikely to get you a return on investment. Some of these scammers are trying to capture your personal information, to sell to other companies looking to market to you.
Never spend a dime for any offer until you have completely researched and are sure that they are absolutely legitimate. Never give your personal information prior to having a full description of the opportunity.
If you’re on a website that promises a wealth opportunity that says nothing regarding what the product, financial and time commitment are—surf away!
In today’s financially strapped environment, never do business with anyone prior to checking out the company with your local consumer protection agency, the state attorney general’s office and the BBB.
If you understand that nothing in life is free and a quick fortune is stuff of fantasy and the occasional lottery winner, you will view these types of scams with a different set of glasses. Be skeptical of all opportunities until you done your due diligence. Prudence will payoff and ensure that you maintain your financial health.
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