From the beginning of time, there have been those that seek to scam money away from others. Today’s digital consumers are generally more aware of the risks involved with online use and transactions; in turn, scammers are getting smarter and creating more realistic looking ventures. However, many general principles apply to protect your hard earned money from being taken, no matter the scamming method.
Tips to Avoiding Common Investment Scams
Stay Informed
If you know of a scamming tactic before you encounter it, you can instantly recognize it when you run across it. Before making any investment, big or small, be sure that you are up to date on the latest trends and practices being used by scammers, and evaluate whether the supposed investment opportunity might actually be a scam in disguise.
Remember That If It’s Too Good to Be True, It Probably Is
If someone is offering you a fail-proof investment opportunity that seems too good to be true, it probably is. Beware of easy “get rich quick” schemes. Real investment opportunities will always come with some amount of risk. The cliché “there is no free lunch” is unquestionably true for investments.
Beware of Those Trying to Get You to Make a Quick Decision
Scammers thrive on getting potential investors to make quick or emotional decisions before the investor has had time to evaluate or investigate the claims being made. If someone is pressuring you to move quickly, preventing you from taking time to carefully or thoughtfully consider the claims, or using over-emotional language, then the opportunity may be a false one.
Notice a Lack of Transparency About Risk
Those offering a legitimate investment opportunity will be upfront about the potential risk and will explain why the expected risk is appropriate for your individual investment objectives. Scammers will fail to be transparent about the risk – because the risk is often the loss of your entire investment.
Get an Industry Expert’s Opinion
In some of the biggest investment scams of the last century, many intelligent and experienced professionals were swindled because they relied on supposed “experts” who actually had little knowledge of underlying investment risks, while forgetting to consult industry specific professionals. Appeal to authority is a logical fallacy in which someone believes something to be true because a figure of authority said it, even if the professional has no authority in the particular field. Be sure to listen to qualified experts, especially when making investments in science, medicine, or technology.
Listen to Your Gut
If something seems off, it’s worth it to double-check your suspicions. Ask a neutral third party for their insight. Millions of years of evaluation have conditioned us to have an automatic response if we sense danger or uncertainty. Your wallet may suffer if you ignore those gut reactions telling you something is not right.
Premier Estate Litigators for Investment Scams
If you’ve been a victim of investment fraud, Gaslowitz Frankel LLC has significant experience representing investors harmed by the misconduct of their stockbroker, investment advisor, insurance agent, or other trusted advisor. When you contact our law office at 404.892.9797, you’ll be in touch with the premier business litigators for the state of Georgia.
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Gaslowitz Frankel LLC is the Southeast’s premier fiduciary litigation law firm. Our legal team specializes in all aspects of fiduciary disputes with over 30 years of experience representing individuals, executors, trustees, and more in complex fiduciary disputes involving wills, estates, and trusts.
