All investments have risks. No one can guarantee that you’ll make money from your investments. Do some homework to reduce your risk.
Check out the investment, the company, and the person telling you to invest in the offer, even if you know them. Search online for the name of the company and words like “review,” “scam,” or “complaint.”
Find out as much as you can about the investment from independent sources. Is it a stock? Companies that issue stocks have to give investors important information in a “prospectus.” Read it before you invest.
Check out the qualifications of an investment professional. There are a couple of sources to try, depending on the kind of advisor. Check out investment advisor firms or individuals and brokers who sell stocks, bonds, and other securities.
Find out about the fees related to the investment and the advisor. Even small differences in fees can have a big impact on earnings over time.
Learn to spot cryptocurrency investment scammers. These scammers might post investment sites that look real, but you’ll find you can’t withdraw the money you’ve “invested.” Some scammers pretend to be a celebrity who can multiply any cryptocurrency you send them. Others get real celebrities to offer giveaways like free crypto to generate hype. Scammers also use online dating sites to sweet-talk you into a bogus crypto “investment” with phony promises and fake guarantees.
Know the classic signs of investment fraud.
- Has someone promised a high rate of return on an investment with low risk? High returns always involve high risk. There are never guarantees with investments.
- Has someone pressured you to invest before you’ve had time to investigate?
- Did someone claim you can “get rich quick” or “make money fast”? This is also a sign of fraud.
- Did someone approach you about a so-called investment through a membership group you trust — like military or religious groups, or ethnic communities? Maybe they claim to be operating from a location near your installation. Scammers exploit that affinity with you to gain — and misuse — your trust.
