There are certain repeating themes and ways of scamming that high-yield investment programs use. These programs rely on certain rhetoric, branding, and pitches to make their offer seem legitimate. There are ways that investors can protect themselves from falling victim to these types of scams. Below are some general suggestions for individuals to protect themselves from these types of fraudulent scams.
1. Promises, promises, promises
Beware of too many promises or promises that seem too good to be true. Legitimate investment opportunities are realistic and practical in return of investment projections, daily, weekly and monthly. They do not promise percentages on return daily and if they do they are prudent in those projections with full explanation for their occurrence. What they do not do is promise excessive returns or out of the ordinary returns. They do not promise that there is little to no risk involved. Instead, they are open and honest around the risks involved and expect investors to be educated about investing independently. Legitimate investment opportunities do not offer one stop programs and investors must bring their own awareness, educational skill levels, skepticism and prudence to navigate legitimate investments with success.
2. Referrals and anything that sounds like a “down-line”
Legitimate companies are not organized to bring in referrals. If you wish to invest, then you do so as an investor that is not dependent on the amount of persons you sign up for a particular program or service. While legitimate companies may offer incentives for their services and products, such as some legitimate financial advisors, this is not an ideal or desirable practice in sound investing. The concept of independence in investing is important here and investors looking to involve others in their personal portfolios and financial plans are not fully invested within the activity of legitimate investing.
3. Social media integration
Legitimate investment opportunities stand alone and rarely require advertisement or expansion through aggressive social relationship marketing. Social media integration is popular across industry, however, the establishment of the industry and best practices still under guard how legitimate companies operate and express themselves. If companies are seeking to expand through your friends and family and are looking for anyone, especially persons with little to no experience in investing, then they may be considered predatory and aggressive in the pursuit of funding based on promising hopes, dreams, or the ideal of a specific lifestyle. These vanity investment opportunities play upon the vanities and idea of investments without operating solidly as an investment product or service. To avoid these vanities, it is important for new and experienced investors to focus squarely on realities objectives, opportunities and business relationships that have a standard of normal operations.
4. Details about the business
If you consider doing business with someone and a company that claims to be large in size, then details about who runs the company and the company’s history should be available directly from the company, rather than a background search on the internet. Established companies will provide this information within the about section of the websites and portfolios and may do other things such as list some of their successes that are legitimate and actual.
5. How is the money handled?
If the company you are working with is handing money through e-currency accounts then it could be that they are looking to make the money untraceable as well as to get money from all over the globe. To avoid this, look for multiple methods for currency integration including standard means of bank transfer. Look for standard procedures and institutional self-checks that enable the institution to independently investigate and account for how funds are handles. Standard operating procedures and manuals of operations integrated with clear compliance with state, federal, and international taxation and exchange laws shows how the company handles taxes and reports, thus lending legitimacy to the operation.