|
Here are some handy hints to help you recognise,
and avoid, potential scams.
• Scam operators
dress for success. They work very hard to come
across as confident, professional and successful.
They may dress extremely well and work out of
impressive offices. If your only contact is
by mail, the office may have a prestigious sounding
address but be only a 'serviced office' or mail
box. Investigate before you part with any money.
• Scam operators
often try to sell poorly understood financial
products. There is a wide variety of financial
products on offer from banks, brokerage firms
and financial planners. When it comes to your
money, think things through for yourself after
you have all the facts. Never give someone control
over your money just because you think you are
too old, young or financially inexperienced.
If you need help, only deal with registered
financial advisers.
• Scam operators
bring out the worst in you - greed, fear and
insecurity - and make you feel inadequate and
overawed by their financial knowledge. If you
are tempted to make investment-related decisions
based only on 'gut feelings', watch out!
• Scam operators
are fair weather friends. They are friendly
and may take a personal interest in you and
your life. They call back to tell you positive
things about the investment they're offering.
You feel you are being pressured and the truth
is, you are! Scam operators do everything in
their power to make a sale. Often, once you
have paid up, contact dwindles, and then stops
altogether. If you can't make contact or get
answers to your questions, this may be a danger
signal.
• Every investment
involves some risk. Be especially careful if
the salesperson downplays any downside or denies
that risk exists. Check your comfort level with
any financial proposal. If a risk is going to
keep you awake at night - don't even consider
it.
|
