Friday, August 15, 2014

How scam operates (their typical modus operandi)

As investor, we seek to earn higher returns from our capital investments.
However, there is also another very important aspect that investor must do:
*** Minimize your risks and probability of losses.

As investor, when assessing potential investments, be very very aware of "get rick quick" scheme!  These are typically "scam"!

How to smell that the touted investment is likely a scam?
They usually have these following characteristics:

- Promising high fixed returns (like 20% or more) over some fixed period or extended period of time.

- Low investment capital (small bit-size) so that it is easier to lure the general population and lower-middle class investors who are also typically not so investment-savy.

- Usually involves investment of things like properties, farms, and factories under construction, or just paper-promise of owning some valuable assets like gold from them (these things are not physically there and will not be there ultimately!).

- Will try to claim to be affiliated with some reputable bodies (actually they don't) so that you will have more trust to "invest" with them.

- At the start of their game, they may usually do real large payout to early investors so that these people will go around spreading news to increase their "business" but really the money are from their later "investors" to pay off the earlier "investors" (and not because their operate genuine business that are generating large profits!).

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