Falling prey to online scams can be scary and mentallytaxing upon you and your loved ones.
These scams target one and all and comesin all forms – false lotteries, get-rich-quickly schemes, investment schemesand many more. One of the best ways to stop yourself from falling into the trapis through awareness. Here is a list of some useful tips that will help you tobe extra vigilant and shield yourself from them:· Beware ofany ‘business opportunity’ scams: Often you may have come across phonecalls or emails approaching you with lucrative business opportunity that will generatehigh returns in short time when you invest. As the saying goes, there is noshort cut to success, the same holds good for investments and businessopportunities as well.
The promise of easy money from unsolicited sources is definitelynot worth considering. So, even if the deal seems good, think again before’investing’ your hard-earned money without verifying its authenticity.· Friendly loans:At times, you may get a call from a friend or friend of friend asking your helpto contribute money as a loan along with the ‘promise’ to repay you handsomely.Do not fall prey to such scams as they will only ruin your investments andpeach of mind forever.· Do properverification: One way to do proper verification is to check the proventrack record of the scheme/fund. Once you are satisfied that it is legal, then tryand figure out if it gives consistent returns.
You can also go through theoffer document that categorically describes the fund, its strategy andperformance in the market. Moreover, you can do your own research about themanagement before investing in the scheme. · Remainup-to-date: Interact regularly with your fund manager to keep yourselfupdated about strategic changes, returns, and competitor reviews about severalschemes. You can also read up any latest news about the fund or company beforeyou decide to invest.· Seekanother opinion: Be sceptical of any unsolicited investment opportunities overthe phone, newspaper, email or from any relative. Before you decide to invest, seeka second opinion from a registered and qualified financial advisor, a fundmanager, a lawyer, or an accountant.· Take therequired amount of time: Any legitimate investment opportunity will never ask you to invest on thespot or call you incessantly to take a fast decision.
Scammers will also try tolure you by making false statements of how investing in a scheme is a ‘now ornever’ opportunity and how many people are already investing and getting hugereturns. Be aware of these red flags and take all the time you need to make awell-informed decision. While there are no fool-proof strategies available to avoidinvestor fraud, there are many approaches that you as an investor can take todecrease the risk of any entity trying to dig into your hard-earned money thewrong way. By being aware of the tips mentioned here, you can secure yourselfas well as your investments.