You Need To Know Signs Of Investment Frauds

After knowing the mode used to commit fraud under the guise of investment, this time you also need to know the general characteristics of investment fraud in order to anticipate investment fraud. However, if you become a victim of investment fraud, we suggest you hire an investment fraud lawyer right away.

These are the characteristics of investment fraud that you should stay away from:

Tantalizing profit sharing

The lure of big profits is always tempting. Those who commit fraud under the guise of investment will say that you can get a large profit share later.

Do not believe if there is a promising investment return of up to 30% per month. While the highest yield for stock investment is 27% per year and 22% per year for mixed mutual funds. So, if the benefits are too tempting, that’s where you have to be suspicious.

You have to invite other people

This is one of the most obvious reasons why you shouldn’t join in investments that require you to invite other people. It is undeniable that many fake investments are under the guise of MLM and turn money into a business. The most unfortunate thing is that there are still many who are interested in joining.

When you are offered to join an investment model like this, remember the Ponzi Scheme. This investment will not last long, because there is no real money circulation.

The use of characters to attract interest

Many illegal investment companies use prominent personalities or names to attract potential investors. If someone offers you an investment with a little explanation about the business then shows the name of a famous person or figure who also joined, then you should feel suspicious toward it.

Has no written explanation

You should also be suspicious if the person offering the investment does not have a booklet or written explanation about the investment product. Sometimes there are only leaflets with photos of community leaders and small print that is not easy to read.

Always ask for a written explanation from anyone who offers you investment. Even better if you ask for time to think for several days in order to find out more about investment products offered.

Leave a Reply

Your email address will not be published. Required fields are marked *