Caution advised as Better Business Bureau highlights investment scams

Investment scams come in various disguises, making it hard for victims to realize they’ve been duped. Even experienced investors can be targets as scammers tailor their approach to deceive them. However, certain signs can help identify potential scams and steps can be taken for protection.

These scams involve unlicensed individuals offering fake investment opportunities to unsuspecting victims. The most common scam starts with convincing victims to invest in a supposed initiative and then sending them fake progress reports. The truth surfaces only when attempting to withdraw funds reveals the non-existence of the investment.

Another prevalent scam is the Ponzi scheme, where people invest in a company based on recruitment rather than product sales. This pyramid scheme collapses when no more investors can be brought in, as there are no profits without continuous recruitment.

Warning signs include the use of enticing phrases and lack of seller credentials. To safeguard investments, ensure the seller is registered with the SEC or other official regulators. Be cautious of promises of guaranteed high returns with low risk; such claims are often red flags. High-pressure sales tactics and attempts to build a false connection based on shared characteristics should also raise suspicions as they may be part of deceitful strategies.