What is an investment scam?

Investment scams aim to get unsuspecting people to hand over money – they can seem
perfectly legitimate, appearing knowledgeable with websites, testimonials and marketing
material.

Example:
The most famous kind of investment scam is a Ponzi
scheme, where money is collected from new investors to
pay previous investors. Eventually, the money owed is
more than the money being collected and the scheme
collapses, leaving all the investors out of pocket.
How to spot scam?
Financial scams is crucial to protect your investments and
financial well-being. Here are some red flags that can help
you identify potential financial scams:
Be aware
Some scammers have very convincing
websites and other online presence, which
makes them look like a legitimate
company. Always check with the
FCAOpens in a new window to make sure
they’re registered and. for warnings about
cloned websites and unregulated firms.
Check on the FCA websiteOpens in a new
window

1. Guaranteed High Returns: If an investment

promises unusually high returns with little or no risk, be skeptical. High returns
often come with high risk.
2. Pressure to Invest Quickly: Scammers often pressure you to invest
immediately, claiming the opportunity is limited. Legitimate investments allow
time for due diligence and decision-making.
 3. Lack of Transparency: If the investment opportunity lacks clear and detailed
information about the company, the investment product, or the risks involved, it
may be a scam.
4. Unregistered or Unlicensed Sellers: Ensure that the investment firm and
individuals involved are registered with the appropriate regulatory authorities.
Check their licenses and credentials.
5. Complex Strategies and Jargon: Scams often use complex terminology and
strategies to confuse investors. A legitimate investment opportunity should be
explained in simple terms.
6. Difficulty in Withdrawing Funds: If it's challenging to withdraw your invested
funds or receive returns, it could be a sign of a scam.
7. Pressure to Recruit Others: Pyramid schemes or Ponzi schemes often involve
recruitment to sustain the scheme. Be cautious if you're asked to recruit others
for additional returns.
8. No Risk Disclosures: All investments carry some level of risk. If a scheme
doesn't disclose the risks associated with the investment, it's likely a scam.
9. Unusual Payment Methods: Be cautious if asked to invest through
unconventional methods like wire transfers, gift cards, or cryptocurrency, as
these are common in scams.
10. Lack of Verifiable Information: Verify the information provided by conducting
independent research. If you can't find credible information about the company or
investment opportunity, it's a warning sign.
Regarding current situaton of an investment promising profits after 25 days with a
monthly interest rate of over 90%;

This is highly unrealistic and a classic sign of a scam. Investments with

such high and consistent returns are almost always fraudulent.