Investment Scams

Investment scams have been around for a long time. The investment sector of any country's economy is constantly growing and a tempting target for scammers. Over the years, investments have become another source of income for individuals, businesses, and countries. While there are always risks of investments not panning out, either being less successful than expected or downright failing, there is also the risk of investing with the wrong individual or organisation whose goal is to extort money from unaware victims who fall into their schemes.

Some of the simplest scams involve thieves posing as a bank or other financial institution and asking for personal data, such as bank account or credit card information. Did you transfer funds and get scammed? You are not alone. We ask that you act fast by contacting us because time is of the essence, and every day counts. Luckily for you, we have wealth recovery professionals on our team who know exactly how to get your money back in the shortest time frame.

No one is immune to being scammed. Scams, particularly investment scams, can be quite elaborate and deceive even the most discerning. You may feel devastated, ashamed and helpless if you have been the victim of an investment scam. We understand how you feel and what we can do to help.


Ponzi and Pyramid Schemes

One prevalent investment scam is the Ponzi scheme. It is like a flimsy wheel that one day inevitably collapses on itself. The scammer offers high short-term returns to encourage reinvestment but there is no true investment. Money from new clients is used to pay early investors, creating an illusion of stability to draw in new investors with false promises, until the whole operation collapses with all except those at the top losing.

Similar to the Ponzi scheme is the Pyramid scheme. However, in order to make money and grow, you are required to recruit investors. The difference between a legal and illegal company with a pyramid structure, is illegal schemes make money solely by recruiting investors, while legal companies recruit to sell some kind of product. Without new investors, these schemes tend to collapse, rebrand, and start again.

It is important with any kind of investment to educate yourself on how it works, what the risks are and also what kind of scam or fraud is possible. For example, binary options are a gamble and have only two outcomes, a payout or nothing. As such, unscrupulous brokers can manipulate and mislead the trader into bad buys or sells, taking advantage of people who do not know what binary options are and how it works, offering a lucrative return without any risk.

It holds true that if something seems too good to be true, then it probably is, and this is the golden rule for any kind of investment.


Some red flags to look out for are:

• Pressure to invest now.


• Subtle discouragement of doing your own research and trying to instil a fear of 'missing out' if you don't act fast.


• Promises of high returns with little or no risk.


• Unlicensed investment professionals.


• Offers/reviews that sound "too good to be true".


• Unsolicited pitches seeking to obtain your personal information.


• Asked to pay for investments by credit card, gift card, wiring money abroad or to a personal account.

Some ways to protect yourself:

• Do not let anyone pressure you into making investment decisions.


• Ask for written information and do your own research.


• Ask questions.


• Get independent financial advice.


• Check for yourself that the company is registered with the appropriate regulators and holds all required and active financial credentials and licences.


• If the company checks out but the contact is unsolicited, do not give personal information over the phone, email or text. Independently obtain company contact details and contact them directly to ask questions about the contact you received, their products/services and if what you have been offered is legitimate.

Free Review