canstockphoto10924485There is no end in sight to the tricks that people will use to separate you from your money. They will use any trick in the book to get you to sign, reveal or give away your financial secrets for them to gain access. There are steps you can take to protect yourself from financial fraud.

What is financial fraud? It is the act of taking something from someone by using deceitful tactics. Unless you are able to prove that you’ve been defrauded, you are simply out of your money.  This is a hard lesson that people have to learn for trusting an individual or a company that tell you that they will make you fast money.

Here are some tips that you can use to keep you financially safe.

There’s an old saying “If it sounds too good to be true, then it probably is.” Anyone who promises that you will make a double return on your investment for very little or no work is to be suspected of not being truthful. It could be that they are telling the truth. Think of the people who have invested in Google, which is the number one search engine in the world. Another example is  Microsoft, which is the leading software company that makes billions of dollars in revenue. The people who became wealthy have done their due diligence before they invested any of their money.

If someone approach you about a business or an investment opportunity, and there are red flags waving, then you should keep your money in your wallet.

Get in on the ground floor. Whenever it’s mentioned that you are the “seed investor” this simply means that your money is supporting their project. You should always ask if they believe enough in their project to invest their own money. If the answer is no or they are giving you a vague answer, then you shouldn’t let go of your money either.

Ask for a portfolio and a business plan. If a company is looking for investors, they will need to show something in writing such as a business plan and the financial projections. This is required by the banks. If it is good enough for the banks which has a lot more money by the way, then they can also share the same information with you.

Beware of the investments that doesn’t exist. This includes the condo builders that pre sell property when there isn’t even a model available for the prospective buyers can see. How much does it cost for you to invest? In this case do your due diligence by speaking with a mentor and get an opinion on the best ways to invest your money. Make a decision once you have done your homework.

Learn all about the latest schemes. Local and national newspapers often cover stories on the latest scams. There are stock market, multi- level marketing, and offshore banking scams and the like. If you are approached by someone that’s  trying to convince you to part with your money with a similar offer, you are warned to stay away from them.

Whether you are investing ten dollars or a million dollars, always ask for proof that your money will be spent for what is promised. Ask questions, demand proof and find a reputable mentor about the source of the claims to protect yourself from financial fraud. Never sign or give away any of your personal information until you can think about it while conducting your own investigation.

 

For more budgeting tips, sign up for the 10 Part Mini Course or if you like what you’ve read share this with your Facebook and Twitter friends.

 

 

 

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