Streaming issues? Report here
Temp 702 logo 1000 x 1000 2020 Temp 702 logo 1000 x 1000 2020
Best of 702
00:00 - 04:00
volume_up
volume_mute

Up Next: Early Breakfast with Africa Melane
See full line-up
Best of 702
00:00 - 04:00

How to spot an investment scam from a mile away

18 June 2018 4:44 PM
Tags:
Sponsored
FNB

We've all heard stories of people falling victim to poor investment decisions. Here's what you need to look out for.

Has anyone ever come to you with an investment offer that sounded too good to be true? We've all heard stories of friends, colleagues or even family members who were victims of a savings or investment scam and lost their hard-earned money. According to Product Specialist at FNB Ester Ochse, these scams take a legitimate investment model and distort it to the benefit of the scam artists.

Promises of double, even triple-digit investment returns are tempting and can cause us to make preventable mistakes.

Ester Ochse, Product Specialist at FNB

There are many ways that novice and even experienced investors lose their money to scams. Get rich quick schemes, Ponzi schemes, pyramid schemes and so many other scams are perfectly designed to separate unsuspecting investors from their money.

Knowing how to spot a scam is vital to your investment success. These are the warning signs that you could be dealing with a questionable investment opportunity:

  • You're usually approached by unsolicited calls, SMSs or emails

  • There is no clear investment strategy, or the information seems confusing

  • You don't understand the business model

  • The company pushes you into making fast decisions

  • You're being offered high investment returns but with low investment risk

  • It's hard to contact the business owners or their reps

  • Your profits and investment returns are often dependent on your ability to attract new members

If you have money to invest, be cautious. Take the following steps to ensure that you don't become a victim.

  • Don't be bullied into tight timelines and rushed decisions

  • If it sounds too good to be true it probably is

  • Be careful when you're offered low risk but high reward opportunities.

  • Do your research before investing your money

  • Speak to a trusted and registered financial adviser before you invest

Listen to the full interview below:


18 June 2018 4:44 PM
Tags:
Sponsored
FNB

More from Be Financially Smart with FNB