Thousands of people lose unlimited pounds in investment scams. With the growing digital communications and era of the internet, it is becoming difficult to identify potential scammers.
What is an Investment Scam?
Investment scams are the scams where the companies pretend to be the legit ones and persuade the traders to invest with them in order to get higher returns. These scam companies convince innocent investors by offering various attractive schemes. the investors, thinking it to be reliable company invest with them. Due to the digital advancement, the identification of these scammers is so difficult that even professional investors fall victim to this.
Common Type of Investment Scams-
Cold Calling – One of the most common investment scams is cold calling. Here, the scammers call the traders who are usually new and have not yet invested anywhere. They convince the people by introducing attractive offers and making a fake website, pretending to be a reliable investment company. They also claim to be regulated by the government ensuring the protection of your funds. The investors thinking it to be a legit company, invest with them resulting in losing all their money.
Pump and Dump – It is yet another investment scam introduced by scammers. Here, the fraudsters keep on increasing the price artificially in order to attract investors. Later on, they sell their shares at a higher price resulting in the stock prices failing. This leads to the loss of money of the investors.
Emails and Advertisements – In this type of investment scam, the scammers send you the emails. Once you click on the email you are redirected to the website of the scammers. These websites often look legit and attractive and so people think of them as a reliable option to invest in. And as people start investing with them, they might end up losing their life savings.
Unsolicited Contacts – Here, the Fraudsters pretend to be stockbrokers or managers managing the portfolios. They approach you through email or contact you on social media sites, offering you a low-risk investment scheme and high returns. They might also encourage you to invest in overseas companies. These people often sound legit but are involved in scam operating services.
Protect Yourself From Investment Scams-
Get Advice – Even though you have heard about the company, try to get professional advice from your legal advisor. Seeking legal advice is always a better option before investing.
Do your Research – Find out about the address, location, background and history of the company before moving further and investing. Client reviews, analytics, and data, working culture, etc play a major role in identifying the potential fraud firms.
Low Risk with High Returns – If a firm is offering you higher returns with low investment, check them out. As the investment market is volatile in nature, no firm can guarantee a fixed return in a short span of time.
Contacted Repeatedly – If you are being contacted repeatedly to invest quickly or else you will miss out on the opportunity. Look out for the chances of being scammed and do not invest in a hurry or by being under pressure.
Promotional materials or Websites – The scammers usually have professional-looking websites with the most attractive services and schemes. It is advisable for the investors to do thorough research in order to protect yourself from getting scammed.
Apart from the above-mentioned points, there are various other points that need to be considered before investing with any company. Investors should be cautious enough while investing a huge sum of money. If you are a victim of the scam, get help now in getting your lost fund back by contacting All Scam Reports. We are here to guide you in your fund recovery process.