Financial field and finance scams

Financial field and finance scams

Finance is a fantastic field with a lot of legitimate, lucrative potential. However, like in all ventures involving large sums of money and a lot of different people, the possibility for finance scams, fraud and schemes appears. One of the best known such ploys in today’s world, is that of the infamous overseas prince. Thus, the so-called prince writes an email describing a dreamlike situation and immense wealth, but for one little detail – he lacks a valid bank account and needs yours to make his dreams come true… Needless to say, those who fall prey to this common Internet scam not only never see any promised remuneration, but also part with their own money for good. Alternatively, a variant on the scam is the grandfather scheme, a similar ploy targeting the elderly; a group often targeted by scammers and swindlers.

In contrast, a pyramid scheme may actually pay off for the few “lucky one” to participate in the beginning, the ones used to “hook” the others, so to speak. Pyramid scams are often impressive by the number of people they actually draw in. But don’t get fooled by con-artists or duped by scammers. Remember one simple truth: If it seems too good to be true, it probably is! Thus, in pyramid scams what happens is that the first people to invest actually may get paid their investments. They may generate returns, which is a ploy to attract newcomers by truthful word of mouth. This word of mouth helps scammers at that stage of the game. However, once enough profits have been amassed, the wrongdoers swiftly transfer the funds to some offshore account. The scammers will never be seen again by the duped investors. Be careful out there!

Luckily, most reputable asset management firms are upfront about their advisers’ credentials. Just as investors perform due diligence (professional due diligence being so valuable that it warrants costs in the ranges of $25,000)… Thus, to reiterate, just as investors perform due diligence about a potential venue before investing, so it would be wise for you to research the consultant or fund manager beforehand, prior to trusting him or her with your financial decisions.

After all, it’s your money!

Finance scams. Cats have a scam going – you buy the food, they eat the food, they go away; that’s the deal. (Eddie Izzard, an English Comedian). Illustration: © Megan Jorgensen (Elena)