Investment scams come in many guises, but they all share a single similarity. As a rule, all scams will suggest they can offer impressively high returns but little to no risk. These fraudulent activities take advantage of a consumer’s wish to negate any uncertainty from earning high yield investments. In this blog, we’ll explain some of the common features of scams to help you protect your hard-earned funds.
Understanding tactics and techniques
Investors will discover that most scams common components. A well-documented tactic involves the promotion of a financial opportunity that is not real. The investor’s money is taken, and the scammer disappears. Another model used is for fraudsters to advertise a genuine investment. They take the funds from savers, but do not invest them, stealing them instead. The last method used is for criminals to impersonate a legitimate financial institution to steal wealth.
How to detect scams
Investing can help consumers earn an income, but the chance of reaping rewards always comes with associated risks. If savers come across an opportunity that claims there is zero risk involved and significant returns, it is likely a scam. It is always wise to check if a company offering an investment scheme is FCA registered, however, expert advice is well worth taking to avoid loss of wealth.
If you need independent financial advice in Shropshire or have concerns about the validity of an investment opportunity, get in touch with us today at Hartey Wealth Management for assistance.
