Before you invest:
1. Take your time.
Using different sales scenarios, the scammers may try to convince you that you miss the opportunity to invest in a profitable business, if you do not send them to hundreds of thousand of money transfers. But if you do, you will lose your money. They often insist on money transfers using certain systems, because there is almost impossible to keep track of money or return them. Do not rush to send anything until you learn everything at 100% and is not well ponder.
Do not miss : The five key rules of successful investing in cryptocurrency
2. Conduct research.
It is best should get an independent assessment of the specific assets, businesses or investments that you are considering. Assessment proposed by the promoters may be a fake. Talk to the previous owner of the assets or business, but keep in mind that some dishonest promoters hire people who lie about their success with investments, to convince you to invest. Discuss all investment ideas or plans with an accountant, lawyer or other consultant, whom you know and trust.
3. Be skeptical.
Fraudsters are lying. Do not let their looks deceive you. Sales representatives must tell you about the risks of specific investments in full. Be especially suspicious of trading floors that minimize risk or depict the written disclosure of risks as conventional formalities.
4. Find out who you are dealing with.
Can you find published information about the company in which you invest? Or the person whom you trust, heard of this company? Perform an Internet search with the company name and words such as "review", "fraud" or "complaint". Browse through a few pages of search results. It is advisable to check with the relevant authorities of this company, or raise even lawsuits. But dishonest promoters often control a particular fraud briefly and closed before they can be detected. Often, they reopen under another name, selling another investment scam. In addition, they can lie about their name or business history, and can also pay people for the positive "reference" in their company.
5. Ask if the company has a record.
Fraudsters often use news stories about the successes of legitimate companies as bait, claiming that their "activity" is very similar to that company. Unfortunately, the success stories of other companies in this area have no relationship to it. Request a record company in which you plan to invest, learn and the people working there.
6. Get the details.
Legitimate companies daily enroll investors' money. Ask for written confirmation on how much of your money goes to the actual investments and how much is going to commission what profit promoters and marketing costs.
There are many different money making schemes. If you plan to invest, it is better to know the possible pitfalls. We have more information about these schemes:
Multilevel Marketing . Some multi-level marketing programs - is a pyramid scheme, which is illegal and risky.
Investment and business seminars . Promises of quick and easy money can be a powerful lure, but you may find that the products and information sold at these seminars are useless.
Investing in gold. Some gold sellers do not fulfill what they promise, and can encourage people to investments that are not suitable for them.
Collectible coins . Investing in collectible coins requires research. Learn about coins, graders and sellers.
Investing in bullion . Dishonest sellers ingots sometimes make false claims about the content, rarity or value.
Government fraud . "Money for Nothing", "grant proposals" are normally fraud.
Companies to promote inventions . Dishonest promoters make false and exaggerated claims about the market potential of the invention for the sale of expensive service.