5 signs, by which one recognizes Rip-offs
In former times one called it chain letter or snow ball system. And only very stupid ones gave away their money for such a thing and hoped for the large profit. That the profit of course failed to materialize and only the initiators of the pyramid made a killing was clear from the outset. And almost everyone knew that and acted accordingly. Those who didn’t stick to it had to pay an apprenticeship fee, but the sums involved were mostly manageable and didn’t hurt much.
But when it comes to the really big money, some people’s human expertise fails them. All too often investors are blinded by beautiful and expensive glossy brochures and trust blindly in the promises made therein. Of course, all investors get the big bucks. Of course without risk. And all that ethically correct.
Who’s believes, can become fast poor, because unfortunately the reality does not look so rosig, as in the folder. All too often behind the promises are fraudulent schemes. Recognizing them is sometimes not so easy. And who has already the time and the specialized knowledge, the many sides strong sales folder completely and intensively for hidden traps to comb through.
But you often don’t have to, because there are a few signs that can be an indication that you should avoid the offered investment at all costs.
5 points, which can be an indication of rip-off artists:
1. Raw material companies
Commodity companies are often touted as undiscovered penny stocks. It is almost always about lucrative prospecting rights or test drillings that indicate rich gas and oil fields or gold and silver deposits. Soon lucrative deals would be struck with governments and then the dollars would just bubble up, they say. The investors would have to hurry therefore, in order to be able to still participate in this plant.
But there is usually a good reason why the touted companies are still penny stocks.
2. Excessive collateral
The providers of windy investment opportunities know, of course, that many investors have dollar signs in their eyes from sheer greed, but the fear of loss is still very pronounced. Therefore they try to impress the investors with numerous safety characteristics in the folder. There with the BaFin one advertises, which only formally blesses a folder, it is given worthless warranties or it with catchwords, like land register security or inflation protection, around itself is thrown.
This creates a feeling of security. But this exists only on paper.
3. Small investor orientation
Usually, small investors cause a lot of work and paperwork at the financial service provider. Collecting the small amounts from many small investors costs time and a lot of money. Large-scale advertising has to be done and the intermediaries want to be remunerated. Therefore it should be surprising if a provider advertises investment opportunities especially for small investors. Probably it is before with large and institutional investors rebuffed. Expensive placing with small investors is the only way for him to get rid of his financial product yet.
For the small investors, this usually means loss of the invested capital.
If with alleged Promis in the supervisory board one advertises, all warning lights should go on with investors. The mostly washed-up ex-politicians or managers are bought in for a small sum to give the investment product a bit of glamour with their names from better times.
Good financial investments have no need for such things.
5. Excessive charitable involvement
Last but not least, the exaggerated emphasis on charitable activities is also a warning signal. All too gladly windy financial sharks donate to needy people. This is basically not bad. But they do this on the one hand to ease their own conscience, and on the other hand to get more free publicity. If this then also still happens over Boulevard media, investors should bring their money as fast as possible into security.
If you pay attention to these 5 points, you can recognize rip-offs and dubious financial investments from the outset with some certainty.
Whether other investments, which do not come from dubious intermediaries, are any good and in the end a profit for the investor jumps out, however, is still not said. Even the once highly praised open-ended real estate funds, which in the vast majority of cases were marketed by reputable providers, turned out in the end to be a money-destroying machine for investors.