Caution!

If an investment opportunity sounds too good to be true, it probably is. Find out about the red flags you can look out for to identify possible investment scams.

Beware! Investment Scams

ASK. CHECK. CONFIRM.

Knowing the tell-tale signs, such as promises of guaranteed high returns at very low risk, helps you spot investment scams.

Before you commit to an investment, always ASK, CHECK and CONFIRM.

ASK the company as many questions as you need to fully understand the investment opportunity.

If the company is unable to, or avoids answering any of your questions, be wary. Even if the company is able to provide answers, do not be too quick to believe everything you are told. Be sure to CHECK.

CHECK on the company, its owners, directors and management members, and the investment opportunity.

Doing so will help you to assess if the investment opportunity is genuine.

Examples:

  • Check if the information provided by the company about itself is true. For example, its address or track record (if any).
  • Check if the information (i.e. experience, qualifications) provided by the owners, directors and management members about themselves is true.
  • Check if there are any complaints or negative comments made about the company, its owners, directors and management members, and the investment opportunity, whether in the news or on online forums.

Ask someone you trust to help you with your checks if necessary.

Even if you do not find any information that suggests that the investment opportunity is dubious, you should still CONFIRM.

CONFIRM, before investing, the company’s and any representatives’ credentials by using available resources including the following:

Remember, if the investment opportunity sounds too good to be true, it probably is.

INVESTMENT SCAM STORIES

We hope these real stories can help you to identify potential investment scams.

Encountered an investment scam? Play a part in helping to stop investment scams by sharing your story here!

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