Investing your money wisely can help it grow; however, if you fall victim to a scam, you'll lose everything you put into the investment. In order to protect yourself from this, you need to learn the signs of a probable scam
No Surety Bond
If a financial advisor or investment company doesn't have a surety bond, you need to be more careful in dealing with them. Surety bonds are a type of insurance guaranteeing that the company will do what it says it will do. If a company doesn't possess this type of insurance, it may not be as legitimate as a company that does. Companies have to meet certain criteria to get this type of bond; which usually involves going through a verification process.
Emphasis on Recruitment Rather Than Sales
One common type of investment fraud is called a pyramid scheme. Pyramid schemes promise you a high return on your investment, but your return is based on how many other people you can get to invest in the product or service rather than on how well the product itself does in the market. This type of investment (Read More....)