To protect yourself from falling victim to fraud , it ’ s crucial to be aware of the red flags associated with investment schemes and property scams .
Indicators that should raise alarm bells
1 . Recruitment Pressure : If an investment requires you to recruit new investors to earn returns , it ’ s likely a pyramid scheme . Genuine investments should not rely on recruitment for profitability .
2 . Lack of Transparency : Be wary of investment platforms that lack clear underlying assets or mechanisms for generating returns . If you can ’ t understand how your money will grow , proceed with caution .
3 . Sense of Urgency : Scammers often create a false sense of urgency , pressuring investors to commit quickly without proper research . Legitimate opportunities allow for due diligence .
4 . No Proven Track Record : Investment platforms should have a history of performance . If they cannot provide evidence of consistent returns , it ’ s a red flag .
5 . Unregistered Platforms : Verify that the investment platform is registered with regulatory bodies , such as the Financial Sector Conduct Authority ( FSCA ). Unregistered platforms are often fraudulent .
6 . No Real Asset Backing : Ensure that the investment is tied to actual funds or assets . If it seems like a bubble , it likely is .
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