Investment Fraud Law Blog
As the demand of investment opportunities continues to rise, you can't avoid the fact you may come across investment fraud scams. Even though investment fraud has been around sometime now, it is however becoming more difficult to spot. Mainly being down to more and more scammers being aware of the power of the internet. Here are a few tips on avoiding investment fraud.
Avoid the get rich schemes - Just in the US alone get rich schemes have already cost millions of dollars in lost investments. Don't allow yourself to get caught up in one, if something seems to be too good to be true it normally is. So stay clear.
Do all the research needed on your chosen investment - Try and make sure you understand the industry you are getting into, maybe look into taking courses to help you understand the industry you wish to invest in. This will help you not only prepare yourself but give you a better understanding of your investment.
Look for legit records - Make sure you check that the industry you are investing in isn't some kind of fly by company. Make sure others have invested in the past and are making, if its a new industry you need to look that they aren't just a fly by agency. Maybe wait for others to invest first before you take that chance.
They aren't sufficiently transparent - Most investment fraud scams will refuse you access to your account details, they will instead offer monthly statements, but everyone knows they can be swindled! You must make sure you've access to your account and you can view daily activity.
They can't explain their market edge - If they are a company that's legit then they should be able to offer you a overview of their market and explain how your investment will be worth your while. They should give you good reasons to invest in them, how will you make a profit if you do so?
Being told an offer is limited - Being told something is a limited offer normally is always to good to be true. This is one of the most important things you need to be aware. The words "limited offer" can show up in a number of scams online. "If you invest then you are one of the privileged," this is another well known saying to be aware of.
Never sign a document without a legal representative - Make sure you've always a legal representative that you trust with you to go over anything you sign. You may be given documents you don't understand therefore you need a professional to look over any documents. You don't want to sign what you don't understand.