Investment scams
Fraudsters promise easy profits to lure victims. Be cautious of unexpected calls, emails, or social media messages offering quick money or high returns.
What is an investment scam?
Investment scams involve fraudsters offering opportunities that promise high or guaranteed returns with little to no risk. These scams may come through cold calls, emails, social media messages, or fake investment platforms.
The scammers often pose as financial advisers or representatives of legitimate firms and may present professional-looking websites, documents, or testimonials to gain your trust.
Common examples include cryptocurrency scams, fake bond or stock investments, and schemes like “get rich quick” trading systems.
How to avoid it
- Be sceptical of unsolicited investment offers. If someone contacts you out of the blue, it’s likely a scam.
- Verify the credentials of the individual and company. Use your country’s financial regulator to check if they’re authorised.
- Avoid pressure tactics. Scammers often urge you to act quickly or tell you the opportunity is limited.
- Never trust guaranteed returns. All investments carry some level of risk and promises of "no risk" are a red flag.
- Research thoroughly. Don’t rely solely on testimonials or glossy websites. Look for independent reviews or reports.
Remember
If it sounds too good to be true, it probably is. Always take your time and do your homework before investing any money.