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Detecting an Investment Scam

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Page 1: Detecting an Investment Scam
Page 2: Detecting an Investment Scam
Page 3: Detecting an Investment Scam
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• To start of the list, we look at easily one of the most common scamming tactics in the business

• Reeling in investors by offering quick returns on investments, this tactic is also one of the most effective, especially to new comers

• Usually you want to stay away from these type of investments

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• Promising investors a quick buck is seen virtually everywhere

• However, most of the time it isn’t true

• Promises are next to impossible to keep in the stock market as no one can ever be completely sure on an investment

• Try to stay away from these “quick turn-arounds.”

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• Some investments actually work with services to scam investors into spending money into their stock

• If an investor ever advises you to put everything into one investment, this is a huge sign that you’re most likely in the process of getting scammed

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These three marketing tools can all be manipulated to fit a scammers needs

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Ethos is used by scammers by promising “experts” approving their service and applying themselves credibility.

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Pathos is used by tricking investors into believing false promises such as “quick cash” or “earn one million dollars using this service”, which is a clear sign these are scams.

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Logos are used in various ways. Many scam artist’s logos are rather unprofessional, giving a clear sign that their

service may not be legitimate. However, the more skillful scammers do have relatively visually appealing

logos, so be wary of what you see on the outside and do investigating before making any investments.

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• If at any time you as an investor are offered an unorthodox way of payment, it is most likely a scam

• There are legitimate services that do offer rather unusual ways of pay, but it is one of the most often used methods of scam, so be wary

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• How important it is to research before investing. This should always be the case whether you are looking to buy a stock or service

• Research should be conducted through multiple outlet

• Just an investment never guarantees it actually is

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• How important it is to research before investing. Knowing who you are giving your money to should be common sense

• Just having a casual conversation or exchanging a few emails simply is not enough

• One important thing to keep your eye out on is make sure whoever you deal with is authorized to do so as well

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• Being honest with scammers is the best way to catch them in the act

• If you ask questions revolving their service, the market, make sure the answer the give back to you is appropriate

• Don’t be afraid to ask questions designed to differentiate scammers and legitimate investments

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• Have you ever gotten a phone call randomly from a service or company?

• The best way to avoid this is simply not to answer calls from numbers you are unfamiliar with

• By chance happen to answer, don’t fall for their tactics and simply hang up or say no

• Stand your ground to cold-calls to avoid being a scam victim

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