Top 5 Investment Scams To Be Aware Of As A New England Indian

Have you heard of the latest investment opportunity guaranteed to make you a millionaire in a month? Well, you may be about to fall for an investment scam if the offer sounds too lucrative or too good to be true. Some years back,unsuspecting Indians lost billionsto bogus investments. You don’t want to fall into the trap of these conmen. Here are some top investment scams you need to watch out for in 2018.

Pyramid or Ponzi Schemes

Pyramid schemes are one of the most popular types of scams because the first people who get good returns. They later refer their friends and family. With enough money collected from the new investors, early investors can enjoy withdrawal requests. You’ll be surprised to learn thatPonzi schemes can run for yearsandact as a disguiseto real investments. The schemes run until there is an excessive demand for distributions. Some programmes have investors worldwide and an office location to dupe unsuspecting investors.

Foreign Currency Scams

What if you invested in a foreign currency that guaranteed a 10% interest every month? Although this may sound like a good idea, it could end up being a scam. You’ll hear currencies like the Egyptian pound, Iraqi Dinar, or the Vietnamese Fong being mentioned. Most people are meant to believe that when governments revalue their currencies, their worth increases against the dollar. You can then sell and get a profit.

Unlike other scams, the foreign currency may take possession of real currency. However, you’ll later realize that the currencies are not likely to increase in value and you might have a difficult time reselling.

Cryptocurrency Scams

Last year, cryptocurrencies were increasingly popular, and the bitcoin hit the $10,000 mark. Nonetheless, it’s essential to note that cryptocurrencies are high-risk investments that are speculative. The fact that the industry is unregulatedincreases their risk of consumer manipulation. Some companies trading cryptocurrencies have shut down and disappeared with investors’ money. Also, some offerings do not comply with the set security laws.

Government Grant Scams

With this type of scam, you get a call or an email confirming that you qualify for a grant. However, you’ll need to pay a delivery or processing fee before they can send it. The money is sent through a prepaid debit card or wire transfer.  

Precious Metals Scams

Investing in precious metals sounds like a lucrative venture. But, you’ll be shocked to find out that the metals you’re to own do not exist. For example, you may be sold an interest in a gold mine that has no gold. The investors know you have no time to visit the site and you will believe what the seller says.

These are some of the most popular,yet destructive investment scamsyou need to avoid. It’s crucial to talk to a qualified financial advisor when you’re planning to invest your money.

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