Beware! Investment Scams
ASK. CHECK. CONFIRM.
Knowing the tell-tale signs, such as promises of guaranteed high returns at very low risk, helps you spot investment scams.
Before you commit to an investment, always ASK, CHECK and CONFIRM.
ASK the company as many questions as you need to fully understand the investment opportunity.
If the company is unable to, or avoids answering any of your questions, be wary. Even if the company is able to provide answers, do not be too quick to believe everything you are told. Be sure to CHECK.
CHECK on the company, its owners, directors and management members, and the investment opportunity.
Doing so will help you to assess if the investment opportunity is genuine.
- Check if the information provided by the company about itself is true. For example, its address or track record (if any).
- Check if the information (i.e. experience, qualifications) provided by the owners, directors and management members about themselves is true.
- Check if there are any complaints or negative comments made about the company, its owners, directors and management members, and the investment opportunity, whether in the news or on online forums.
Ask someone you trust to help you with your checks if necessary.
Even if you do not find any information that suggests that the investment opportunity is dubious, you should still CONFIRM.
CONFIRM, before investing, the company’s and any representatives’ credentials by using available resources including the following:
- Financial Institutions Directory – a list of persons regulated by MAS
- Register of Representatives – a list of individuals who conduct activities regulated by MAS
- Investor Alert List – a list of persons unregulated by MAS who
may have been wrongly perceived as being licensed or
authorised by MAS
Remember, if the investment opportunity sounds too good to be true, it probably is.
INVESTMENT SCAM STORIES
We hope these real stories can help you to identify potential investment scams.
I have been self-learning Forex trading for quite some time, and felt that I could improve my skills by learning from experienced trainers.
By: Dream turn Nightmare
I received a telephone call around mid 2011 from a wine broker from a wine company . He had got my personal details from one of the seminarsI attended.
Around mid 2012 I received a telephone call from an art broker. The broker showed me impressive marketing material, that caught my interest.
US Property Investment Scam
The seminars I attended aggressively positioned the XYZ investment as a low-risk investment, backed by real assets and there are checks and balances provided.