We have previously covered some of the ways you can identify a fraudster and the types of scams they use. This week we look at how to protect yourself from investment fraud and what you should do if you or your family or someone you know encounters such a person or scam.
Common things a fraudster may tell you
Here are some common things a fraudster may tell you:
-“I am offering you double the returns that you can get anywhere else.”
-“This deal is going fast and will not be around for long. You must act soon!”
-“Just make the cheque out to me personally. I’ll pass it on. It’s a lot easier that way.”
-“You know, not many people know about this deal.”
-“Now is the time to take advantage of this opportunity and make money.”
-“Other smart people like you have already joined and are making a fortune.”
-“This company has a killer product and will be the next Apple.”
How to Protect yourself
Beware of promises of unrealistic returns. This is perhaps the easiest way to spot a scam. Any legitimate investment involves risk. Guarantees of unrealistically high returns are a clear warning sign. If you think that this offer is, “Too good to be true,” then this should be considered a red flag.
Diversify. Don’t put all your eggs in one basket. Diversify not only your assets but also your money managers, accounts, and financial institutions. Spreading your money around will limit your exposure to the financial problems of any one institution.
Don’t…
