The Basics of Avoiding Investment Scams

Investment scams should be avoided at all costs. Investors work for hard earned money in order for that money to be taken care of in way that accrues more wealth. Avoiding the loss of investments is an important aspect to ensuring that investments will turn a profit eventually. In order to protect investments and investors, there are some basics to avoiding these investment scams that investors can master so that that they are sure they are investing soundly and wisely. Some of these basics are common sense, while others do require due diligence and healthy skepticism. Investment scams utilize marketing psychology as well as marketing demographics and analytics in order to craft messages that seem to be appropriate when they are not. They slick attempts at fraud and even persons who are wise about the basics of scams can be caught off guard by some of the tricks and new ways investment scams are operating.


1.     Stay current

There are constantly new scams and ways of scamming that become available on the market.  When in the process of investing, always check to see if a company has been reported or if the tactics a company is using are unique to such a degree that they could be a new form of scamming.

2.     Pay attention to the psychology

If the scam is deliberating using psychological tactics to entice buyers and investors, be careful to jot these things down and take further note on their specifics through asking detailed follower questions designed to get to serious information about whether the investment opportunity is worthy of attention. Many of these opportunities cannot supply basic information or answer questions in a coherent, honest, professional, concise and detailed manner.


3.     Don’t get caught up in the glow

The desire and idea of making lots of money can sometimes dull the skeptical senses within an individual to the point where they see dollar signs and little else. Scammers understand this aspect of human psychology and bank on its affects once the aspects of their pitch take effect. They understand basic human tendencies towards fear, vanity, greed, and an easy way and seek to play on these raw emotions and tendencies when pitching their product, service, formula or method in order to create a glowing affect for the individual. They are clear about what to say to make the offer seem fair and better than gold in order to navigate objections.


4.     They understand your objections

In any kind of sales, the salesperson is already thinking of every possible objection the potential buyer, customer, or potential investor could make. These types of salespeople are already looking to offer shining prizes in the face of objections that might seem like a good deal at the time. Be careful with these sales techniques and understand that one’s questions are likely already well documented in the sales training from those who run these operations. In order to navigate this, take your time to really think about the opportunity. Most of these types of counter objections rely on haste, so beware of pressure, investing in haste, or giving money under pressure.

Overall there are multiple ways in which scam artist can seek to fraud individuals out of hard earned money. Above are some of the very basics to incorporate in a healthy view especially when first seeking to invest. Remember to take your time, ask questions, and cross check the opportunity with professionals to ensure that the investment opportunity is not a scam. There are people who can advise on companies so do not feel that you are alone. There are governmental organizations as well as private organizations, message boards, and other ways of seeking advice so utilize your resources to really check behind an opportunity to make sure it is sound and fit for your investment money.


Hi there! High Yield Investment Programs; there is no person in this world who will run a business at loss which is why such programs eventually turn out to be scam. Once I passed my high school, I realized that I have many expenditures coming up every now and then. I then began researching on internet about earning ways and believe me during the whole year I became a puppet of scammers throughout; those either paid way less than the work they asked for or they would go out of sight after gaining trust of people.

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