How to avoid investment scams

Investment fraud often involves enticing promises of substantial profits with minimal risk, quick returns, and guaranteed outcomes. These scams can be promoted through social media ads or initiated by direct contact from supposed "investors." To prevent falling victim to such schemes, it is essential to understand their methods of operation and conduct thorough research on the company involved.


Here are some main red flags to watch out for:


1. Investments promising high profits with minimal risk.
2. Unsolicited calls, emails, or messages via social media, especially from individuals you have no prior connection with, offering investment opportunities.
3. Scammers often employ high-pressure tactics to force quick decision-making.
4. Requests to download screen sharing or remote access tools to "assist" you with the investment process. Remember, legitimate financial institutions would never ask you to do this.


It is important to remember that legitimate investments offering risk-free substantial returns are highly unlikely. If an investment opportunity seems too good to be true, it is likely a scam.
In relation to cryptocurrency assets purchase, which is a common area targeted by fraudsters, there is a typical example of how a scam may unfold. The fraudster may guide you on creating a wallet or an exchange account and later instruct you to buy cryptocurrency and send it to their wallet, which they might claim belongs to you. They may also offer to handle the trades on your behalf and promise to share the profits with you at a later stage. However, please be aware that once you send funds to their wallet address, cryptocurrency transactions are irreversible, meaning you cannot get a refund.

When you attempt to claim your profits, the scammer will likely make excuses or disappear altogether. In the case of investments made on fake websites, the sites tend to vanish and become inaccessible. To avoid falling victim to investment fraud, it is essential to stay vigilant, conduct thorough research, and seek advice from trusted financial professionals or institutions before making any investment decisions.


By following these guidelines, you can protect yourself from falling victim to investment fraud:


1. Exercise caution when dealing with unfamiliar individuals offering unrealistic profits.
2. Cross-check the existence of the investment company by consulting the European Central Bank's list of financial institutions and investment funds.
3. Conduct thorough online research on the company, paying attention to any negative reviews or comments from other consumers. Be wary of websites with little to no reviews.
4. Remember that investments offering high returns with minimal risk are simply not realistic.
5. Only send cryptocurrency to wallets that are fully under your control, ensuring that you have the private key and access to the wallet itself.