By Plato 
Investing is essential for those of you who wish to see your assets grow in value and watch your money work for itself. Finding the right investment for you is an extremely important and personal choice to make. There are so many options, from property to crypto, but within the riches, lies a dangerous lie. Investment scams are rife in the digital age. Investors losing millions to simple yet life-changing scams that steal a lifetime of savings in a matter of seconds. There is always risk involved with investing, but when it comes to scams, they pose the biggest threat of all.
There are key ways you can avoid scams. Spotting them is your best defence against your savings being stolen. In this blog, we will share exactly how you can avoid being scammed.
The Stench of a Scam
First of all, if you get contact out of the blue from someone claiming to have insider information regarding a hot tip, this is most likely a scam. Never trust strangers when it comes to investing money. Several broker scams are circulating with unregulated brokers claiming to handle money safely, and then disappear never to be seen again.
Also, scammers will offer a deal that is ‘guaranteed’ to give you riches with little to no risk. This almost doesn’t exist in the world of investing, so keep in mind that this is likely a scam.
Additionally, scammers will make their proposed opportunity seem time-sensitive. For example, they will offer an irresistible deal, but make the statement that it is only available for the next 24 hours. Within this time they will pressure you to make the deposit, only to disappear off the face of the earth once the money is sent. Trust your instincts – if you feel pressured, walk away.
Become an Investment Scam Spy
To be at the top of your game at avoiding scams, always steer clear of shady investments. This could be anything where the proposed investment is lacking key details and is shrouded in unrealistic positives. Don’t rely solely on their sweet talk. Seek independent reviews, financial statements, and news articles from trustworthy sources.
Also, if the investment you are about to make doesn’t make sense to you or your peers, steer clear. You should have a complete understanding of your investments, especially if you are a beginner. Scammers are betting on finding people who have limited understanding, and therefore are easier to manipulate into investing. Especially hungary investors who are always looking for the latest thing. For example hyperverse scams have been rife due to the hype surrounding this investment scheme.
Common Scams to Evade:
Ponzi Schemes: These deceptive schemes use money from new investors to pay “returns” to existing ones. Eventually, the house crumbles, leaving everyone empty-handed.
Pump and Dump Schemes: Scammers inflate a stock’s price with false information or hype, then quickly sell their shares before the price plummets, leaving later investors holding the bag.
High-Yield Investment Programs (HYIPs): These promise unrealistic returns with little to no risk. They’re often unregistered and unregulated, and your money is likely to disappear faster than a desert mirage.
Bottom Line
Overall, becoming a master at spotting investment scams will offer you that extra blanket of security needed when embarking on your investment journey.