How To Avoid Investment Fraud? Investing always involves some degree of risk. …! You can minimize your risk of investing unwisely by asking questions and getting the facts about any investment before you buy. To avoid scams, you should: 1. Check out everything - no matter how trustworthy the person seems who brings the investment opportunity to your attention. 2. Never make an investment based solely on the recommendation of a member of an organization or religious or cultural group to which you belong. 3. Investigate the investment thoroughly and check the truth of every statement you are told about the investment. Be aware that the person telling you about the investment may have been fooled into believing that the investment is legitimate when it is not. 4. Do not fall for investments that promise spectacular profits OR guaranteed returns beyond the Regulator/Controller (like RBI) permitted interest returns. 5. If an investment seems too good to be true, then it probably is. 6. Similarly, be extremely leery of any investment that is said to have no risks OR that which is offered without any terms and conditions attached to it; very few investments are risk-free. The greater the potential return from an investment, the greater your risk of losing money. Promises of fast and high profits, with little or no risk, are classic warning signs of fraud. 7. Be skeptical of any investment opportunity that is not in writing. Fraudsters often avoid putting things in writing, but legitimate investments are usually in writing. Avoid an investment if you are told they do not have the time to reduce to writing the particulars about the investment. You should also be suspicious if you are told to keep the investment opportunity confidential. 8. Dont be pressured or rushed into buying an investment before you have a chance to think about - or investigate - the opportunity. Just because someone you know made money, or claims to have made money, doesnt mean you will, too. Be especially skeptical of investments that are pitched as once-in-a-lifetime opportunities, particularly when the promoter bases the recommendation on inside or confidential information. 9. Fraudsters are increasingly using the Internet to target particular groups through e-mail and sms spams. If you receive an unsolicited e-mail or sms from someone you dont know, containing a cant miss investment, your best move is to pass up the opportunity and forward the spam to the concerned department of Government of India or any other local legal administration authorities.
Posted on: Sun, 25 Jan 2015 09:29:58 +0000
Trending Topics
Recently Viewed Topics
© 2015