You want to invest your money. You know it can be profitable and set you up for the future. You also know that you want to let professionals do this on your behalf, as a nod to their knowledge and experience.
At the same time, you worry about fraud and investment scams. You have heard too many stories of investors losing it all because they trusted the wrong person. What can you do to stay safe? A few steps you can take include:
- Ignore unsolicited offers that come in. If you didn’t contact someone first, the odds are higher that the offer is a scam. Yes, there are legitimate offers out there, but you should be the one to initiate it.
- Always ask questions. Don’t do anything with your money until you are satisfied with the answers you get.
- Do your own research. Look into the offer and the person making it. Find out about their history. You don’t need to be an expert in this financial arena to glean a general sense of what’s going on and what they’ll do with your money.
- Understand that a lot of fraud starts online. The internet is a powerful tool, but it comes with risks.
- Always ignore things that you feel are “too good to be true.” For instance, someone who tells you that an investment has “no risk” is lying to you. There is always risk.
If you do find yourself victimized by a scam or some type of fraud, make sure you are well aware of the legal options investors have and what to do next.