5 Ways on how OFWs or anyone else can prevent joining in fraudulent investment schemes

Anyone's hard-earned money may disappear quickly as a bubble if one does not know how to manage it properly.



What's a good way to see your money increase without doing much work and effort?
Investing. One of the most captivating reason why people invest their money in different things is the fact of not needing to work too much. Keeping your money in bank savings accounts doesn't really help in growing it, it takes years before you see it grow, although banks uses their clients' money to invest in different businesses, they don't really care on whether their clients are benefiting from it. But by investing, that money of yours can multiply more than you can imagine.

This is the reason why several Filipinos, most of the Overseas Filipino Workers (OFWs) , are easily lured into investing large amount of money in exchange of a bigger figure over time.

But not all of this are legit really do what they promised, in fact, OFWs becomes easy targets of fraudulent investment schemes. Such scams only lead to a huge loss of money and the time used in earning such amount.

In order to help those who are planning to invest their money, here are five ways on how to prevent oneself in falling for the too good to be true promises.

1. Do a research and understand how investing works

Solely wanting to grow your money or help someone grow theirs isn't enough in succeeding in your choice of business venture. Like anything else, you should first know the basics, dos and don'ts and understand the business model before making a decision.

If an investment company doesn't clearly explain the nature of their methods, does not gives you a detailed explanation on how you grow your money, there's a huge possibility that you are dealing with a scam. This is the reason why one must know the basic first.

2. Unimaginable promises of high returns even with a short period of time



No one earns money in a blink of an eye. Even a thief has to plan every move before executing it. Some companies or organizations promises high returns within a short period of investing, that is not possible. This is the main reason why several people are lured into investing.

When you are promised of a too good to be true potential high returns of investments, you become greedy and overly excited that it blinds your logical reasoning. Think about this, if investing can easily make you a millionaire then everyone else should've been millionaires by now, given that such way to grow money can make someone rich instantly, everybody else would've joined but that's not the case, right?

3. Research the company and it's owners

Investing is similar to gambling, it's very risky. In order to know that your money is in good hands, it is better to do some checking on the company owners and the company itself. Is it registered? Who are the owners? What's their background story? Were they convicted before of any criminal charges?

People who work in investment company often have very convincing sales talk skills. They'll try to get your trust so you should be vigilant in whoever offers you to invest.
You should simply learn more about the people and the investment company before you make a choice.



4. There should be a product or service in order to earn money

Investment companies must have a product or services they sell to their customers. If an company is only focusing on recruiting distributings and not their products, needless to say they are fraudulent schemes.

Such companies solely depends on investments from new clients or fundings from investors, so if by any chance that the company no longer gets new referrals or recruits, chances are the company will slowly collapse.

5. Licensed or recognized by the government

Before joining any business venture or investiment company, make sure that it has a permit to operate. Even if they showed you documents, you should still check it for yourself. You should also be always updated about the Securities and Exchange Commission (SEC) which issues public advisories and warnings about fake investment schemes and companies.

You should be aware if the company has a good reputation and is permitted by the goverment to solicit investments.


In summary, before investing your hard-earned money make sure you know what you are doing and where your money is going. It is not enough to believe in the things offered to you, you yourself should be wary and cautious. Do not be blinded by large investment returns. Know the process first.


Source (1)



Loading...