How to Spot Investment Scams? The first clue is obvious: the investment opportunity is time-sensitive. Usually, if you’re offered an investment, you’ll have to pay money in advance. The investment company will never return your money. These companies often give you little or no documentation to back up their claims. You’ll also need to be very careful if you are approached by an investor who is a member of a group or religion.

The next warning sign is lack of information. If an investment company is offering you a low return but has no documentation, then it’s likely to be a scam. If you’re not given sufficient information, it’s probably a scam. You can always report the firm to your local authority. Be wary of people who promise you returns that are more than 8%. The only way to be sure is to investigate the firm with the help of a third party.

Another red flag for an investment scam is when the promoters offer unrealistic returns. You’ll be expected to invest in something that pays 0% to 2% interest, but the truth is that it’s not. You’ll find higher returns without taking on risk. In addition, blacklist any promotional materials that promises risk-free returns. These are very rare. If you see the number 8% or greater, it’s probably a scam.