How Not to Fall to Investment Scams

Nowadays, the world is so complicated that quite a few people get greedy and so are lured to wrong investments. They fall prey to investment scams. This won't only occur in the Philippines but also in any country across the world at the same time. So how would you know whether you are putting your finances in a legitimate business instead of a bogus one? Here are the ways:

Most business scams promise high rates of interest on investments just a short period of time. Interest rates beyond 15% are typically accessible to lure customers to invest their money. Some give a “double your money” guarantee to draw in investors. One good example is the Aman Futures Group in the Visayas and Mindanao. They offered rates of interest starting from 15%-40% over the next 20-30 days. Naturally, many people were attracted to the high investment yield. And they are the ones who did not do a background check relating to the company.

In order not to be fooled by business scammers, one has to look into the prevailing bank rate on deposits and investments. This will serve as a guide to people about what is the on-going rate that is acceptable to the business community. This may seem conservative, however a return of less than 1% on a monthly basis is definitely considered extremely high in today’s business environment.

No Business Operation

Before putting cash in other people’s business, one must check whether you can find any business operation that's being done with the company. Scammers don't have any business at all. What they have is only a bogus SEC certification, which can be easily done by a non-legit businessman, too.

Doing a background check on the founders as well as the officers of the company may also present you with facts about the legitimacy of the business. Lawful company owners are usually the top business leaders in their own individual hometown or province. Their presence is obviously felt in any economic activity in their area.

No License to Sell Securities

Since SEC certificates are public documents, everyone can check out and perform some research. Owning an SEC certification doesn't indicate that the company can already solicit funds and then sell securities to potential investors. A license is necessary to make this happen. Therefore, it's always best to ask the SEC in regards to the business where one wished to take their funds in.

Early investors are paid to lure other people to invest

Business scam owners usually lure their early investors to interact with other people whom they know to invest in like they did. The scammers motivate them by providing a very high yield on their investment. This goes on until such time that there is no longer money arriving in. Check payments to investors keep on bouncing back and so the investors saw that the business enterprise was a hoax in the end.

So what do we do in order not to fall prey to business scammers? We have to first think, investigate, and carefully study. We must also speak with financial planners and bankers if we hardly understand anything with regards to the investment. Checking into the legality of the business and the investment opportunity with the concerned government agency may also enlighten us on the matter. Remember that whenever in doubt, never put your money in it. It's best to keep it in other worthwhile economic activities.

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Please visit: http://www.trulyrichclub.ph/2014/04/fall-investment-scams/