Most of the people who earned extra money want to multiply them, there's nothing wrong with this thinking but in doing this make sure to have due diligence in research to avoid mistakes and fraudsters who can abuse you. There are many ways how to multiply your hard-earned money one option is by investing it.Â
Every day there are plenty of people who got victimized by investment scams in the Philippines. This happens because most of us want to multiply our hard-earned money to have a better future for our family in case we retired. Overseas Filipino Worker is one of the most people who is victimized by these investment scams because of a lack of knowledge when it comes to financial literacy.Â
What is an investment?
When you do an Investment you are putting money into a financial asset or business with the expectation of receiving a profit or return on the investment. There are many different types of investments, including stocks, bonds, mutual funds, real estate, and commodities. Our goal in investing our money is to grow wealth over time through the appreciation of the asset or the income it generates.Â
You might want to read these other articles about other Scam methods:
- Task Job Scam: Protecting Yourself from Deceptive Opportunities
- Unveiling the Web of Deceit: Navigating the Dangers of Money Remittance Scams
A legitimate investment involves risk, as there is no guarantee of a profit or return. The higher the risk the higher the return. But this will depend on your risk appetite, It is important to carefully consider the specific investment and the associated risks before making any investment decisions.
What to avoid?
Investment scams can be very harmful and costly, especially for those who are not familiar with them. It is important to be vigilant and take steps to protect yourself from falling victim to these types of scams.Â
Here at Shoppiverse PH, we will give you some tips on how to avoid investment scams.
1. Research the company or individual offering the investment opportunity
Before making any investment, it is important to do your due diligence and research the company or individual offering the opportunity. Don't hesitate to ask questions about the people who are offering investment. Aside from that check their credentials, track record, and reputation.Â
Give yourself at least one month to carefully study the investment that you will be joining. Investment is a long-term game and not a get-rich-quick scheme. If you are not sure about the investment try to share it with friends or family that is not part or member of the investment, by doing this you will get an unbiased opinion.
In the Philippines investment company are registered in Securities and Exchange Commission you can verify if the company are legitimate to collect investment by visiting this link.Â
2. Be wary of high-pressure sales tactics
If someone is pressuring you to make a decision quickly or is making unrealistic promises, be cautious. One of the most common methods of investment scams is to make you decide quickly based on your emotions. Investments are needed to be carefully analyzed and studied. A legitimate investment opportunity will not require you to make a hasty decision.
One thing that you can do to prevent yourself from making an outright decision is to tell them that you need to consult first your spouse or wife. If you are single the best thing to do is to tell them that you are paying for the studies of your siblings.
3. Understand the investment and ask questions
When somebody offers you an investment whether they are a personal friend. Or even they tell you that a popular person join the investment they are offering. Don't be afraid to ask questions about the investment and how it works. Knowing every single detail is important because that is the hard-earned money that you will be investing in them. Avoid investment that promise you about "guaranteed returns" in reality there is no business in the world that has same profit everyday or months. So where do they get the money to pay you in times that their business is not profitable.
When researching about the investment avoid relying solely on social media because reviews on social media are sometimes created by the agent that also offers the investment. So the information you will get is biased.
If the person offering the investment cannot provide clear and concise answers, this could be a red flag.
4. Don't give out personal information
If you just met this person online, text message or other messaging application without knowing them personally. Be cautious of providing personal information, such as your e-wallet account, and bank account information, to anyone you do not know or trust. Your personal information can be used in a identity theft that might cause problem in the future.Â
There are scenarios that some people will pretend that they are working for the bank and offer you a business loan if you upgrade your account in exchange of your personal or bank information. This is a scam because bank has a database that contains your bank details without asking you too much information.
5. Don't send money to someone you don't know
If you are asked to send money to an individual or company before having a formal meeting or signing of documents this could be a scam.
You might want to read this related article:
Some person who offers investment will ask you to pay them online in exchange for the investment. Again this is a red flag a legitimate investment especially those involving huge sum amounts of money need to be at least face to face transaction. Because you will need to sign proper documents.
In summary:
By following these tips, you can help protect yourself from falling victim to investment scams. It is always better to be safe than sorry when it comes to your hard-earned money.