There Are Several Ways To Protect Yourself From Investment Scams. Check Out What To Watch And Listen For
The U.S. Government has a list of things to watch out for to avoid investment fraud or investment scams. Misrepresentation or exclusion of the facts to improve the appeal is often used in the form of offering huge profits with little or no risk. No investment is risk-free and most often, the higher the rate of return, the greater the risk. But specifically, look at the points below and beware if you hear or see any of the following:
- Encourages you to borrow money or cash in retirement funds to invest;
- Pressures you to invest immediately;
- Promises quick profits;
- Says that the disclosure documents required by Federal law are just a formality;
- Tells you to write false information on your account form;
- Sends material with typos or misspellings or not printed on letterhead;
- Does not send your money promptly;
- Offers to share inside information; or
- Uses words like “guarantee”,”high return”,”limited offer”, or “as safe as a CD”.
- Uses the phrase, “this investment is IRA-approved.”
- Claims that “off-shore investments are tax-free and confidential.”
Carefully Consider Investing In Gold
Gold is a volatile commodity. Serious investors will often use the services of a financial advisor or company. Common gold investments include bullion, certificates, and coins. Also, please be aware that the U.S. Mint’s American Eagle Gold Bullion Coins are the only gold coins guaranteed by the U.S. Government in terms of purity, content and weight. Certain banks, brokerage houses, and precious metal or collectible coin dealers are the only reputable source, and you can check with the U.S. Mint or Federal Trade Commission for more information.