Investment scam detection tips

Sixto Marcelo By Sixto Marcelo, 5th Nov 2013 | Follow this author | RSS Feed
Posted in Wikinut>Money>Investing

Get-rich-quick schemes have been exposed time and again but some people still fall for them. Be on the lookout for scammers' schemes by checking your greed meter and knowing about the tell-tale signs of fraud in investment dealings.

How to tell if a business opportunity offer is a scam

If you wish to get rich quick, try buying a lottery ticket. It’s by far the most possible, honest and legal way to do so. The chances, however, are way too slim but just the same, it’s well within the bounds of the law. Best of all, there’s really no need to explain so much how you did it when people come asking you. You won it fair and square and that’s it. You just need to pay the right amount of taxes for it so the guys from the revenue service don’t come hounding you with a potential lawsuit.

A get-rich-quick scheme done any other way, however, is something to be suspicious about. Especially when it comes by way of an offer made to sound like a legitimate business opportunity. There is no such thing as a “short-cut” to a successful business venture.

The same holds true for success stories about companies often bruited about by media or coffee shop talk as overnight success. In fact, we all get to hear such stories about companies and their breakthroughs only on a recent development basis. We never hear about how many years such companies struggled before achieving “overnight success.”

This is one of the major reasons why when we hear people prodding us to go into business with them by investing our hard earned money or lifetime savings via a get-rich-quick scheme, beware! There’s a 99% possibility that it’s a scam.

Take note of the following telltale signs of such an offer:

• Too good to be true.

Pyramiding scams use the binary system to cloud your thinking owing to its convoluted nature. Then scammers deal you the double your money card. As you bask in the prospects of passive income being more lucrative than your day job, your judgment becomes hazy. You perceive it to be a win-win situation especially when they ply you with the line that says, “You’re saving money and at the same time making a lot more from it too by possibly doubling the amount in such a short time!” Fine. So how come banks still do business if such schemes really work? You do the math!

• Too good to be trusted.

Scammers are top-caliber con artists. They have this certain flamboyant swagger that televangelists, philanthropists and wiz kids have when they talk or deal with you. They mouth all the catchphrases, sound bites, and altruistic clichés you love to hear from people who seem to know it all, have done it all, and are sure of it all when it comes to business. Until you realize, how come you haven’t ever heard of him/her before. Ask about the low profile and he/she becomes a perfect picture of humility. Why the sudden 360 in personal demeanor? It’s because he/she changes names and identities as they hop from town to town to cover their tracks.

• Too selective to be credible.
People into scams all happen to be selective in the way they give out info. They tell you only about the benefits and the need to put your money in the pot. They conveniently skip the audit part of it. Scammers love to namedrop celebrities to impress you. Try asking them about why they choose to do business with people like you instead of bigwig corporations and they shift the topic to something else. They choose to dwell on the “offer” instead of the basic particulars like business address, company profile, their industry partners, products or services. They probably even have business VoIP going for them but try dialing the numbers on the cards they hand out to you now. Compare it with how these numbers get responded to in say, a few months later. When you find them being remiss on your dividends. The phones just keep on ringing but no one’s there to answer your call.

You know you’ve been had when the get-rich-quick scam you’ve fallen for leaves you taking a big financial hit after experiencing a little bit of windfall. Just as when you begin feeling confident about things, then comes the sting. That’s the way it always goes. Don’t be fooled into such a scam.

Do business the old-fashioned way. Work hard for it!


Crooks, Fraud, Investment Fraud, Modus Operandi, Racketeering, Racketeers, Scam, Scammers, Scoundrels, Swindle, Swindlers

Meet the author

author avatar Sixto Marcelo
Professional graphic designer and writer.

I try to be helpful as much as I can with the kind of information I put out. Pop culture, tech, business, music and art are my points of interest.

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author avatar mybithdaye
25th Dec 2013 (#)

Great advice. But when most people see money, they just fall for it. That's why scams always exists and keep on growing.

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