What are the red flags of an online investment scam?
Online investment fraud has many of the same characteristics as offline investment fraud. Learn to recognize these red flags:
• Promises of high returns with no risk.
Many online scams promise unreasonably high short-term profits. Guarantees of returns around 2 percent a day, 14 percent a week or 40 percent a month are too good to be true. Remember that risk and reward go hand-in-hand.
• Offshore operations.
Many scams are headquartered offshore, making it more difficult for regulators to shut down the scam and recover investors' funds.
• E-Currency sites.
If you have to open an e-currency account to transfer money, use caution. These sites may not be regulated, and the con artists use them to cover up the money trail.
• Recruit your friends.
Most cons will offer bonuses if you recruit your friends into the scheme.
• Professional websites with little to no information.
These days anyone can put up a website. Scam sites may look professional, but they offer little to no information about the company's management, location or details about the investment.
• No written information.
Online scam promoters often fail to provide a prospectus or other form of written information detailing the risks of the investment and procedures to get your money out.
Linkback:
https://tubagbohol.mikeligalig.com/index.php?topic=80092.0