Be An Informed Investor Know When Rates Of Return Are Fraudulent

Do you consider yourself a newbie investor? If so, you are not alone. New investors join the investment scene on an hourly basis. Some jump right into investing while others are more cautious. Whatever the case may be, you need to be an informed investor to avoid fraudulent rates on return advertisements. Nearly every modern investor is continuously looking for new investment opportunities online and offline.

What most newbies do not know is they become a target as soon as the word gets out, they are looking for investment opportunities. It is crucial to be informed, so you can avoid Ponzi schemes. Become an informed investor by reading the content provided in the article below.

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Beware Of Abnormally High Daily Returns

While it may be difficult to believe, scam investments are lurking around every corner of the internet. It is up to you to be able to spot them right off the bat. When you are approached with a new investment scheme, you need to know when to invest and not to invest. One thing you will notice right from the get-go, abnormally high daily return investments are everywhere. This type of fraudulent High-Yield Investment Program, HYIP scheme should be avoided at all costs.

Experts call these “too-good-to-be-true” Ponzi schemes, which is exactly how you should view them as well.

Beware Of Unusually High Referral Fees

Even when you are not looking for a new investment opportunity, you may be approached by an online con artist. In the past, con artists operated by word-of-mouth. Today, they rely on the social media bustle to do all the work. They utilize social media to popularize their investment schemes.

Once the word gets out, you are looking for investment opportunities, you will have a target on your head. Social media is a powerful tool for con artists. It will not take long before you are approached by these scammers. Do not be surprised when you are offered a high referral fee for bringing in new investors into a pyramid scheme. While it may be a tempting offer, you should report the con to the moderators without hesitation.

Too Much Praise Is A Red Flag

Con artists work in groups. They need people like yourself to help bring in new investors. The trouble with the Internet is no one is who they say they are. Now, this is not to say, you will not meet honest, law-abiding investors looking for new investment opportunities online. However, you can trust no one 100 percent.

Utilize reputable investment sites to gather information about new investments.

Beware Of E-Currency Accounts

Many con artists work around e-currency or digital currency. Why? Well, it mainly has to do with the fact digital currency accounts are not licensed. So, they are much harder for the Federal Bureau of Investigations “FBI” to track. The FBI is constantly spreading the word about digital currency scams. By the time, you open a new digital currency account, you have become a victim of a cybercrime.