Common investment frauds and how to avoid them

How many times have we found ourselves wound up with the wrong person or accepting financial advice from someone unknown to us? How many times have we listened to the sane minds that warned us from venturing into the unknown? If only we etched the famous words “Under fair words beware of fraud” on our minds, we would have been less hassled by investment frauds that are mostly avoidable.

Most money scams that we fall prey to are not just the inventions of an insidious mind; they just mirror our callous attitude towards money. Common investment frauds happen when we let our hearts rule over our minds. Ignoring important information about internet scams or not checking our email sources has caused much grief to people affected by instances of investment fraud.

Here are some common investment frauds, you can’t afford to ignore.

Investment Fraud 1: Unwarranted rapport

Have you ever wondered how many times your relatives or peers may have nudged you into investing your savings into schemes promising you high returns within a short period? This kind of familial influence extends to socio-religious communities, close-knit friends, or kitty group members wherein one or more members try to induce others into alleged investment opportunities. This is a very common strategy employed by insurance agents wherein they convince an elderly or influential member of a group into buying policies involving high commissions. This member then goes on to influence the rest into investing in…