How To Avoid Investment Scams

These days, it feels impossible to not know a wild tale of a scammer - and yet it can be even more difficult to avoid investment scams yourself.

With more scams popping up all the time, we explore how you can protect yourself from these fraudsters.

Popular Scams And Public Awareness

If, when you think about scams, you immediately remember those old emails saying they can offer you a huge amount of money in exchange for some of your capital, you aren't alone! Some of the most popular scams are easily identifiable, such as a stranger offering money as long as you send an advance, or a cash prize competition won for a contest you didn’t enter. Even being contacted by banks you haven’t used is a red flag that most are familiar with.

The Rise Of The Scammer

As public awareness of scams has grown, so has the savvy nature of the scammers themselves. Fraudsters have adapted their scams to circumvent the increasing awareness of their target audience, switching from traditional scams to more subtle and difficult-to-detect forms of fraud. Think of text messages claiming there is an issue with the “wallet” on your phone or offerings of endless wealth from cryptocurrency in exchange for a small up-front investment. It is becoming increasingly difficult to tell legitimate companies from the scammers they imitate.

All That Glitters

While many scams use fear-based tactics to get you to pay them, some offer dazzling wealth and riches - as long as you invest first. If someone promises you a large amount of money, a house or similar but you need to make payments beforehand, then remember that all that glitters is not gold!

How To Avoid Internet Scams

Especially in the online space, it can be nearly impossible to distinguish a fake correspondence and offer from a real one. Taking the time to learn more about investing, either alone or with a coach, will help you to identify scams and keep you from making a bad investment.

Always Verify With Care

Putting a phone number into a search engine is not the best way to discover if a caller is genuine. Some hackers can spoof phone numbers easily. Instead, check the FCA register so that you know any investment advice is coming from a legitimate source.

Speak To Your Adviser

One of the leading pieces of advice on how to avoid investment scams is to speak to a qualified financial adviser.

Integritas Financial Planners are available to provide you with all the support and advice you need before making any big decisions.

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