Financial scams account for the dis-ease of how easy the financially illiterate lose money and how easy the scammers make a kill.
You may or are yet to come across the fascinating game of scammers. Whatever the case, if you care about your hard-earned money, please lend this piece your few minutes and stay alert to an equally evolving game of scammers.
Here are some signs to watch out for before entrusting your money with solution providers:
Financial Scam Signs
| Scam Check | The bait | How to tell |
1. Promise of quick profits |
You will recoup your investment in a months’ time | Unless you love wash wash why would you want to risk your money! |
2. Promise of High/ regular returns |
Your investment will grow at 20% per month. Do the math, (20%x12=240% per annum), does that even sound normal? | Legitimate Fund Managers usually give rates of return in terms of (per annum) p.a. Check how government and other benchmark rates compare? Scout for lock-in period and key market trends. |
3. This is a top Secret/ complex strategy |
The recruiter can’t tell you what it is, but promises it’s going to be good! | If the person offering the product cannot understand it how about you and how good is it then? The game has shifted to online platforms – beware of phishing and identity theft. |
4. Urgency to enroll |
The offer is closing next week! | If it’s not an established brand, then it’s most likely a scam. Check for regulatory compliance, if the results are negative – RUN |
5. The product is for an ‘Exclusive club’ |
This is only available to you as a family friend, chamaa member, our church, choir member… | You are easily accessible and you are less likely to question the motive! Question: Have you ever fallen prey to a close one? |
6. Look out for the pyramid |
The recruiter asks you to look for more people so that you boost your earnings. | Underline; more people & Earnings – if you are the investor, why should you tag along ‘friends & family’? |
7. Meetings held in high-end hotels, church compound or campaigns run by influencers! |
Vague branding, no physical office/ registered address or even known management hierarchy. The brand keeps on changing or office keeps on shifting! | Scammers use locations that you are less likely to sense foul play – same goes for use of popular personalities. Note: both are in business! |
How to avoid financial scams
Take Away...
Scammers employ a variety of tactics; they are very informed and adapt to changing times to upgrade their game. These days they have evolved their game to accommodate technology. However, the old tactic of targetting the masses stays – they understand the law of numbers. It is up to you as an individual to stay updated on the changing trends of financial scams. Stay Safe and Stay Informed.
