Falling friend of friend asking your help to
Falling prey to online scams can be scary and mentally
taxing upon you and your loved ones. These scams target one and all and comes
in all forms – false lotteries, get-rich-quickly schemes, investment schemes
and many more. One of the best ways to stop yourself from falling into the trap
is through awareness. Here is a list of some useful tips that will help you to
be extra vigilant and shield yourself from them:
any ‘business opportunity’ scams: Often you may have come across phone
calls or emails approaching you with lucrative business opportunity that will generate
high returns in short time when you invest. As the saying goes, there is no
short cut to success, the same holds good for investments and business
opportunities as well. The promise of easy money from unsolicited sources is definitely
not worth considering. So, even if the deal seems good, think again before
‘investing’ your hard-earned money without verifying its authenticity.
At times, you may get a call from a friend or friend of friend asking your help
to contribute money as a loan along with the ‘promise’ to repay you handsomely.
Do not fall prey to such scams as they will only ruin your investments and
peach of mind forever.
verification: One way to do proper verification is to check the proven
track record of the scheme/fund. Once you are satisfied that it is legal, then try
and figure out if it gives consistent returns. You can also go through the
offer document that categorically describes the fund, its strategy and
performance in the market. Moreover, you can do your own research about the
management before investing in the scheme.
up-to-date: Interact regularly with your fund manager to keep yourself
updated about strategic changes, returns, and competitor reviews about several
schemes. You can also read up any latest news about the fund or company before
you decide to invest.
another opinion: Be sceptical of any unsolicited investment opportunities over
the phone, newspaper, email or from any relative. Before you decide to invest, seek
a second opinion from a registered and qualified financial advisor, a fund
manager, a lawyer, or an accountant.
required amount of time: Any legitimate investment opportunity will never ask you to invest on the
spot or call you incessantly to take a fast decision. Scammers will also try to
lure you by making false statements of how investing in a scheme is a ‘now or
never’ opportunity and how many people are already investing and getting huge
returns. Be aware of these red flags and take all the time you need to make a
While there are no fool-proof strategies available to avoid
investor fraud, there are many approaches that you as an investor can take to
decrease the risk of any entity trying to dig into your hard-earned money the
wrong way. By being aware of the tips mentioned here, you can secure yourself
as well as your investments.