How can you avoid being taken advantage of? Here are a few red flags to watch out for.
Promises of exceptionally high, guaranteed returns:
No investment company can predict the future, or guarantee by how much your money will grow. If it seems too good to be true, it probably is: Promises to double or triple your money in a short period of time mean it is very likely to be a scam.
You must pay fees upfront:
Typically, with investment companies, fees are paid as a portion of amounts invested or on the growth on investments. Request for upfront payment is always a red flag.
A sense of urgency, as if you are running out of time:
If you are being pressured to take action quickly, ask yourself why you would you not be given time to do your own research, or think things through. Never rush into a new investment.
You are asked to deposit money before you complete an application form, open an account, send supporting documents, or are properly vetted (what us South Africans call being ‘fica-ed’):
When it comes to investing, depositing the money is usually the final stage of the process of getting started. You will first need to supply your details and documents and go through a Fica process.
You are contacted via Whatsapp, or from a free email account:
Make sure you check where the messages are being sent from. If they come from a private phone number or one of the many free email services (such as Gmail, Yahoo or Hotmail) proceed with utmost caution.
If you think you are being scammed, go online, look up the company name, find the authorised website and dial the number listed.
If you are still not confident do not pay any money over, a reputable company will be able to 100% assure you they are legitimate.
The content herein does not constitute financial advice.
10X is an authorised FSP.
