I Want To Be Able To Spot An Investment Scam. What Do I Do? How Can I Tell?
The financial world is getting craftier in hiding their “disappointments.” Financial frauds come in various shapes, sizes, and colors. People are getting wiser about what is going on. That means the fraudsters have to get more creative so they can entice the innocent and naive.
There are ways you can notice so you do not become a target yourself.
1) Looking the part is the first phase. Playing a role is the second phase. Sometimes the more you play the part, the more you believe yourself in the role.
” Anyone can hang a shingle in California, and even a sbake looks great in a suit and tie.”
The first thing you have to do is ask for the credentials. The title FINRA on the page. It is a well-known securities commission trade valuation. Look the person or company up online on the site to verify. Any person or company not listed on the FINRA site cannot be trusted.
Almost everyone looks good in a suit and tie. Sometimes you have to go beyond the suit and tie see the snake in the grass.
2) There is something called “phantom riches.” This is the title that people give to scams that promise everything and give you nothing in return. Some of the best shows in the world are played by those who perform phantom wishes.
They have to make it look good to entice you into accepting the offer. No one is going to buy based on an “it might make some money” line. People want a sure thing. They want a guarantee. The only bad part about that is in life there are no guarantees.
Everything in life is a risk. Anyone who tells you differently is selling something.
3) Some people like to claim everyone is investing when they are not. They will also sell you story after story without any evidence to back it up.
“This is a false trail.”
Severus Snape. Harry Potter and the Deathly Hallows.
You need to know why the investment is as good as everyone says. Anyone who cannot tell you the “why” is selling you a scam. Most of the time you will find these scams in social circles and religious organizations. Any place where there is an “affinity” for one another.
4) No one should rush you into doing anything. Real investments will still be there in ten days, even 365 days. Do you feel like you are being rushed? Do you feel pressured into doing something you do not want to do? Do they sell you on how great your life will be once you start?
I have been there myself once or twice. It is a scam, plain and simple.
5) A free gift is a guilt gift to entice you to join. Nothing more.