Investment Scams
Investment
Scams have been around for years. Scam artists use high-pressure tactics to push
investments on unsuspecting consumers, claiming high returns with virtually no
risk. There is always risk with any investment, and the only people to tell you
there is no risk are scam artists. No one can predict accurately how an
investment will perform. Investments offering high returns often attract the
most risk.
Often, these
investments end up being just a simple way for scam artists to gain money from
consumers, giving nothing in return. The scam artists will give excuse after
excuse as to why there is no return for the investment, or they pay off earlier
investors with money from new investors – for more information see the Factsheet
on Ponzi Schemes.
Prevention
If a lucrative
investment opportunity presents itself, it is important to do a lot of
research. Legitimate companies are happy to give you all the information in
writing you require.
Be cautious of
offshore investments. These are often promoted as a way to avoid taxes, however,
this is not the case, and they are often very risky.
Never make an
immediate investment decision when high-pressure tactics have been used. Always
take the time to do your research and consider if the investment suits your
requirements.
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