It is only natural for the average American to look for good investment opportunities in the hope that their hard earned money can grow in the best way possible, instead of letting it sit idly. Unfortunately, scams and fraudulent investment schemes often manage to lure in unsuspecting victims, with the promise of great returns on the sum invested. To know when that gold mine of an investment opportunity is most likely a fraud, be aware of the following signs.

If It’s Too Good to be True, It’s Not

If there was an ABC of detecting investment frauds, then this one would be the A by a country mile!

If an investment scheme promises you high returns within a short time, or the interest rate grows with the amount of money you invest, or any other kind of opportunity that might equate that investment scheme to almost finding a trove of treasure buried in the backyard, it’s most likely, if not always, a fraud.

If You Have Never Heard of a Company, You are Probably Better Off that Way

We receive constant SMSs, emails, instant messages, etc., from investment companies these days, and hidden among them are a select few that could potentially bankrupt you.

If you have not heard of a company or their scheme, it’s not anything you need to hear about either. Not that startups in the financial sector are a rarity, but the chances of them being fraudulent are far too great to take such risks. Run a background search on them to see what you find and if you can’t find anything, it’s a sign that you should stay away from them.

They are Not Really Who they Say they are

It’s easy to pretend for scammers that they are a reputed investment company or a bank nowadays, especially over the internet or via phone calls. Unless you can verify beyond doubt that they really are who they say they are, never divulge any financial details to them, especially not over the phone or via any kind of text or email.

On the Spot, One Time Opportunities of a Lifetime

So, you are getting this amazing investment opportunity, but it will expire in a few hours’ time, and the only possible way for you to avail this opportunity of a lifetime would be to deal with this sales guy who is pitching it to you, of course. Avoid them because if there’s a real investment opportunity, it doesn’t usually work in a similar fashion to an Amazon sale!

What Can You Do If You Have Already Invested in a Scam?

In case you were unfortunate enough to be victimized by investment fraud or even misconduct from a legitimate stockbroker, contact the National Securities Corporation (NSC) immediately. The FINRA arbitration lawyers at the NSC are specialized in recovering funds lost through investment frauds and scams.

Fraudulent individuals are becoming smarter these days, so they generally do not always promise superb returns because most people know them to be a warning sign. Nevertheless, the interest rates and bonuses where applicable will still be a little bit better than what legitimate companies can offer to their customers. If you are vigilant and manage to look past the believable bait, you should be able to see the scam behind it.