AVOIDING INVESTMENT SCAMS PART 2 – FOLLOW THESE BASIC RULES

Following these simple rules will help you protect yourself from potentially substantial loss of money.

Only Purchase Investment Products From Licensed Companies.

Even if you have already made a decision in principle to go ahead with the investment, it’s now time to check the company’s licensing credentials to ensure they are regulated and have the appropriate type of license to sell the product that they have approached you with. COMPANY CHECK

Never Fund Your Investment Directly With the Salesperson

Your payment should only be remitted to either the investment firm themselves or an authorized escrow agent put in place by the investment firm or regulatory agency.

Risk Always Exists However Small

If an investment professional refers to an opportunity as a “sure thing” or refuses to acknowledge any risk in the transaction then do not invest. All investments carry some degree of risk to the investor’s funds.

Final Thought – Be Aware of the Method by Which You Were Contacted

If you were initially contacted by cold call or unsolicited e-mail (spam), now is a good time to step back and reconsider investing in the opportunity being presented to you. And remember, if the investment firm applies pressure to make you decide immediately without letting you think for a day or two, it is probably a scam.

More Investment Scam Resources

Avoiding Investment Scams Part 1 – Common Signs of a Scam Investment

Already Made That Investment? – Minimize Your Potential Losses With These Steps