How To Save Money From Fraudulent Investments?

How to save money from investment fraud

It's your hard earned money and a little carelessness may make you lose it in a jiffy. Now-a-days, almost every Tom, Dick and Harry of the finance sector is coming up with a new investing scheme that sounds so luscious that you just cannot overlook it. It sounds convenient and promises to bring high returns on the principal amount invested. You must have heard of the ever famous "Pyramid Scheme" or "Ponzi Scheme", and may have confronted many more in your social circle. When it comes to money, not all investments are worth it but a few real ones can really provide you with many benefits.

So, how to know if you should invest in a plan or project or stay out of it completely? In this blog, we will cover all those aspects that will help you identify the false layout of an investment plant that has been put before you by someone.


Check The Papers

First thing firsts! Check the legitimacy of the company or the organisation, which is the source of the plan or scheme. Go thoroughly through the registration papers and other legal documents before even considering to put your money into it. You can go a notch above and get those papers checked by a lawyer or a chartered accountant to believe in the credibility of the company.

Check the registration

Time is Money

Stay away from the plans and schemes that screams "limited period offer", especially if the plan is unsolicited. An admissible plan will never ask you to invest on spot. Take your time and opt for a second opinion before putting your money on any such scheme. If you get an unrequested call, ask for a number where you could call back for details. If they do not provide you one, know that this investment is not worth a single penny.

Avoid limited period offer

Invest In Real Estate

Rather than to go for short-term investments that promises a quick and high return on the money, choose the one that gives you a consistent increment over the years and nothing could be a better example of such plan than to invest in real estate. The prices of a piece of land is never going down in this era of growth and development.

Real Estate Investment

Beware of Schemes that are "Too Good To Be True"

No risks, immediate multiplication of money, high returns and that too in the shortest time possible, sounds familiar? If you come across any investment plant that sounds like a dream come true, do not trust it at all. There is no investment plan that goes without a minimal risk factor or promise more than 100 percent guaranteed returns.

High Return Investment

Research About The Source

For marketing purposes, many companies employ cold call technique to let people know about the investment plan. Even if you receive such a call or request, then ask for the details as much as possible, whether it's about the scheme or about the firm that has brought forth the aforementioned plan. You can also dig deep via the open sources that can give detailed information about the company and their financial status over the years. Follow 'Know Your Company' (KYC) rule before proceeding with any kind of formal procedure for the investment.

Know Your Company

Know About Common Investment Fraud Plans

Keep your eyes open and be aware of the common plans that can lead you towards a fraudulent investment. The Pension Scam or Offshore Investing Scam, acquaint yourself with some common fraudulent investment plan that are always circulating in the air. Once you will get familiar with these game plans, you will know at once when someone will try to rope you into such scams with charming words and sumptuous strategy. Being aware of the current events could also save you from falling for illicit schemes.

Pyramid Scheme or Ponzi Scheme

Keep An Eye On Social Media

Social media sites use cookies to keep a tab on your interests. If you are planning to put your money in some kind of system, you might see a banner popping up on your favourite social media sites asking you to invest in a plan that offers everything sweet and nice. All you need to do with such scams is to simply ignore them. A single click might lead you to a financial sham. Don't fall for such cheap tactics of fiscal scammers.

Social Media Fraud

Don't Hesitate To Ask Questions

Ask questions and aim for straight answers. If you see any hesitation in providing a response, back off immediately and save your precious earnings. Even if you get confident answers, make sure to get them verified by a professional or an expert to make a wise decision. Ask for company's address and look it up on the internet if such a thing even exists. Frame simple but wise questions to the agent.

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