The age-old saying, “If it seems to be too good to be true, then it probably is” holds true most of the time.
Has this every happened to you or someone you know? You receive a call or letter from a so-called broker offering some type of investment tip. It can actually be a well-scripted, elaborate scam. First they get your confidence because they state they don’t want any money from you, etc. Then after the third or fourth phone call or letter, they have a great opportunity with no risk to you for a certain $$$.
In this day and age, money is tight, taxes are high, and budgets are being squeezed. We all want to make more money to give family and ourselves a little breathing room and some financial freedom.
What should you do?
Here are seven guidelines for staying safe from “would be” scams:
- Work with trusted professionals.
Ask for references on any broker or financial group you’re considering investing with and actually call these references. Make sure that your broker answers all your questions.
- Know when to hang up the phone.
Ignore unsolicited calls. Never give out ANY personal information, even if they say they are representing your bank or credit card company.
- Take the time to really look at the proposal.
Don’t make a quick, hasty decision. Allow it to sit and do your homework.
- Watch your credit cards.
Always shred and carefully store any credit card receipts. Make it a habit to always review your credit card statements each month.
- Take a step back and know when you’re the most vulnerable.
If you’re in a vulnerable situation, it can make it easier to fall victim to a scam. Know exactly what you’re investing in and take the necessary steps outlined above before you act. Don’t let fear drive your investment.
- Be wary of something that you want to hear.
Anyone who is trying to sell something, even the legitimate ones, know how to make a hard sale based on people’s hopes and dreams. Listen, but make your decision on the entire picture with the “worst case” and “best case” scenarios.
- Remember, if it seems to good to be true, it probably is too good to be true.
It’s generally best not to buy on a “hot tip” or when it’s offered to “only a select group of people”. Do your homework and only make investments that you can afford and afford to lose.
Finally, if you believe that you or anyone you know are being targeted for a scam, REPORT IT immediately to law enforcement.
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Author Blog: http://authorjenniferchase.com/
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