Monday, August 29, 2016

Tips to Avoid Financial Scams

Today it seems like financial scams and rip-offs are everywhere. You worked hard for your money, and it shouldn’t get washed away by scammers. While no one is completely safe from scams, the good news is that you can reduce your chances of experiencing one. To help avoid a financial scam, financial coach Mark Matson provides the following tips:

Verify investment registration and license.

Many online investment scams involve unregistered securities, so always check to determine that it is registered. Also, find out in the person or firm selling the investment needs to be licensed to sell or offer investment advice.

Take all the time you need.

You have the right and responsibility to inspect the investment opportunity, the firm and the salesperson. If a salesperson pressures you to make an immediate decision, say no. A qualified investor will take the necessary time and steps to explain the investment and details, without rushing you to make a decision.

Be skeptical of unsolicited investment opportunities.

Always be wary of unsolicited emails, phone calls, message board postings, or company news releases that are used as a basis for investing. These are major red flags that may signal investment fraud.
Watch for salespeople who prey on your fears

It’s understandable that investors, especially older investors, are concerned about running out of or losing their finances. Con artists know to use this fear as a tactic to get individuals to hand over their finances. Don’t let fear and greed cloud your good judgement. An investment that is right for you will make sense because you will understand it and the risk involved.
Research before you invest.

Scammers are relying on you not to investigate before you invest. Take the time to heavily research the investment to ensure it is a wise one. Understand how the investment works, the risks, any fees, and make sure it fits with your financial goals. Be sure to ask questions about the investment so that you fully understand what it entails. Before you invest, it’s best to get a second opinion from a qualified advisor

While being a victim of a financial scam can certainly be very devastating, fortunately, these are simple and effective things you can do to protect your finances and stay one step ahead of scammers.

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