Many single moms fall victim to investment scams every year. They are targeted because they really do often need the money, and they hope to provide a better life for their children. Investment scams prey on the hopes and dreams of those who have been handed a tough hand in life, and single moms seem to be a prime target for those who just want to take the money and run.
Here are a few tips to help you avoid investment scams:
Demand proven results. Start-up ventures, investing in something such as cattle or crops, or investment firms that don’t pony up information when you ask for it should all be avoided. If they can’t give you firm numbers and people outside their own little circle to contact, don’t give them a dime.
Too good to be true? Even if the investment banker does give you a list of names to contact, and even if those contacts say it’s the greatest thing ever, stay alert for those moments that just don’t add up. If it seems too good to be true, it probably is — and it’s probably been quite effective in luring people in, unfortuantely. That’s what happened to many celebrities when Bernie Madoff wound up losing all of their money while running a Ponzi scheme.
Keep it in confidence? No way. If any investment requires that you keep the plan in the utmost confidence, or requests confidentiality in any form or fashion, run far and fast. If you’ve ever noticed the spam emails that offer a great deal of money but ask you to keep it hush-hush, you know how this works. The fewer people you tell, the more people they can hit with the scam. Besides that, the aura of secrecy is alluring to some who want to believe they have hit the big jackpot, and don’t want to let anyone else in on the plan.
Never give out your account numbers. No investment company will ask for your pin numbers, so never give them out. If anyone asks for that, simply hang up the phone or close out the email. Reputable investment corporations will invite you into their office and handle everything in an above-board manner.
Do your research. A young, start-up company can be here today, gone tomorrow. Check into the company you are thinking about investing with. Do they have a track record that spans several decades? Have they weathered ups and downs in the investment business? You’ve found yourself a winner. But if the paint is still wet on their shingle, wait and see what others do before you throw your hard-earned money into it.
How did they contact you? Here’s the biggest red flag of all. Did they contact you out of the blue for this opportunity? Reputable investment corporations will let you come to them, not the other way around. If your name was purchased from a list or somehow found at random, it’s not coming from a legitimate business, so steer clear!
