Investment Traps: How to Recognise and Avoid Scams
The world of investing attracts not only honest investors, but also scammers who use various schemes to deceive and swindle money. It is important to be vigilant, to be able to recognise investment traps and avoid fraud.
The main signs of fraudulent schemes are:
Guaranteed profits: Scammers promise high and guaranteed profits, which is impossible in real investing.
Quick profits: Scammers offer to get profits in a short time, which is a sign of a pyramid scheme.
Non-transparent activities: Scammers do not disclose information about their activities, ways of earning money and related risks.
Aggressive marketing: Scammers use aggressive marketing to push their services and pressure potential investors.
Unlicensed activities: Scammers operate without a licence and the necessary permits to carry out investment activities.
Attracting new clients: Scammers use a pyramid scheme, paying profits to old investors at the expense of attracting new clients.
Overly good terms and conditions: Scammers offer terms and conditions that are too good to be true.
Hidden fees and charges: Scammers may charge hidden fees and charges that reduce your profits.