There are many different forms that investment scams can take, but one feature is typically shared by all. Most scams will claim to offer exceptionally high returns for little risk. Scams take advantage of a specific desire among investors because they claim they can remove the uncertainty that is a necessary part of high yield investing. Read on as we take a closer look at these fraudulent attempts to part you from your funds.
Three common elements of investment scams
Most scams involve either one or more elements. A common ploy involves promotion of an investment opportunity that doesn’t exist with the scammer taking their target’s money. Another scam involves promoting a legitimate investment opportunity. However, scammers don’t invest their victim’s money, but keep it instead. Finally, scammers pretend to represent a real investment group, but again take their target’s hard-earned funds.
How can you spot an investment scam?
Making investments is a useful way of making money work harder for you, however these opportunities always have risks.
The main reason why scams appear attractive to victims is because they essentially take an activity that comes with a degree of complexity and risk attached to it but make promises of a simple and guaranteed outcome. The saying “If it looks too good to be true, then it likely is” can be the best indicator of an investment scam. However, some criminal ploys can be hard to spot without expert help.
If you seek independent financial advice in Chester regarding an investment opportunity, contact Hartey Wealth Management immediately with any concerns.