Most of us have received or come across unsolicited lucrative investment and financial offers. Whether it’s the limited time investment offer, the inheritance of an unknown relative or the fraudulent bank communication, here are some ways to protect yourself from financial scams:
If an investment offer has returns way higher than ordinary market rates, be careful it most likely has an unhappy end. Most scams offer very high returns which make them attractive and usually the first individuals to invest often get these returns as the evidence of it being “legitimate”. However, those who join in the middle or toward the end often become victims.
Scammers often try to rush people to make a decision because the offer is always a limited time offer or “only available today”. Pause, think through, research the offer before jumping in. At times this may mean walking away and reviewing the offer after a few days.
If someone you don’t know phoned you and proposed to marry you, most of us would hang up on them. So why give a called caller a chance when it comes to investing your money? Use known and regulated companies which can be verified by the Insurance and Pensions Commission, Reserve Bank of Zimbabwe, Zimbabwe Stock Exchange, Securities Commission of Zimbabwe or similar bodies.
Most scammers try to hide the true identity of the company or person you are dealing with. This is usually done by giving an impression that the organisation is very large, has international links (which cannot be verified), has offshore offices in tax friendly countries but never revealing who you are dealing with. At times they even impersonate you bank or another known financial institution. Ask for traceable paper work before investing your money and where possible, visit their offices (if they have any).
Scammers often use tried and tested methods so before investing, check on the internet whether a scam has been done using a similar method elsewhere in the world.
Try and avoid free trial investment offers that require you to sign up with your banking information because often these are used to steal or hack into your bank account.
If unsure, get advice from professionals before making a decision and parting with your money.
