Investment scams and how to avoid it

Investment scams and how to avoid it | I can’t forget one of my talk for Senator Cynthia Villar at Villar Sipag in Las Piñas wherein around 300 OFWs from the middle east such as Saudi Arabia and Dubai attended the talk.

My topic is about “Avoiding Scams in the local and international perspective”. How can I forget the faces of those OFWs who lost all their hard earned money, retirement fund because of EMGOLDEX and other investment scams…

One OFW from Saudi Arabia shared with me his story. He worked abroad for 18 years and decided to finally retire in the Philippines. A close friend invited him to invest in EMGOLDEX where was promised that his P35,000 will become 180,000 to 360,000 in no time. His friend hyped it and showed him brand new sports car and treated him in a luxury hotel. he

He then decided to invest 10 Million pesos… and few weeks after that Emgoldex disappeared without any trace.

The poor Ex-OFW cried, he cannot work abroad anymore due to age. He’s aware that it will be hard for him to work even in the Philippines plus he is starting to get sick due to age and stress of losing his retirement money and 18 years of hardship due to a scam.

The topic given to me is really tough especially for my audience. Most of them got scammed abroad and in the Philippines. Sadly OFWs are the target of scammers. I was able to make it light because I can somehow speak Arabic gaining the attention of the kababayans there..

In order for you to fight a Scam you have to understand how money works, you have to know how to identify red flags. That is the reason why it’s very easy for me to say directly that it’s a SCAM without hesitation.

There are only 2 reasons why people get scammed

  1. Either they are only greedy for money or
  2. 2. Just financially ignorant

How to detect Investment scams and how to avoid it?

Know the classic red flags of investment fraud

Investment scams come and go in different forms. By knowing the general characteristics of scams, it will be easier for you to spot new ones:

  •       Get-rich-quick schemes
  •       Guaranteed returns with almost no risk
  •       Focus on positive testimonials from other members and investors
  •       Rushing you into investing money right away
  •       Free lunch, seminar, or coffee in exchange for investment
  •       A process that relies on “secrets,” “special connections,” and “inside information”

Don’t trust online reviews

Just because your friends are talking about it on social media, doesn’t mean it’s a sound investment. Before you decide to invest in anything, don’t feed off everything the company gives you. Be skeptical and look for information from other sources.

Find out more information about the company, the people behind it, and how they operate. When doing an Internet search, don’t just look for success stories. Also look for any cautionary tales of anyone who’s been fooled by the company or its operators.

You should also check if the company is licensed with Securities and Exchange Commission (SEC) to offer investment products.

Remember, investigate before you invest!

Ask questions about return on investment

One common factor with investment scams is that they promise huge returns over a brief period of time, with very little to no risk.

Remember – there is no such thing!

No genuine investment can make you rich in a matter of days, weeks, or even months. Legitimate investments need time to grow that money.

When talking to a salesperson, ask him how exactly the company is planning to use your money to generate income for its investors. Is the company selling a product or a service? Or are they simply using money from recruits to pay off their old investors?

There should be a clear-cut process that doesn’t involve any secrets or classified information.

Check the salesperson’s background

Even if you personally know the individual who’s selling you a product, you shouldn’t just trust him with your money.

Check that person’s actual qualifications, and don’t just rely on his seeming likeability or trustworthiness. Is she licensed to sell a specific product? Is he affiliated with any financial or investment firms? Did he have previous run-ins with any investors? What are people saying about her?

It’s best if you can meet with your point person in his office so that you can ask for documentation and proof that your money is being invested properly. This also helps you make sure you are dealing with a reputable company, and not an individual presenting themselves as an agent.

Be critical and vigilant

Remember, investment scams come in many forms, and the people behind them will keep coming up with new ways to steal your money. Don’t be afraid to ask questions, and don’t be afraid to say no. Your money – and your financial future – is at stake.

Lastly, Don’t put your hard earned money to something you don’t understand.

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Nolan Lazaro
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5 Comments
  • Jun Pasion
    Posted at 15:51h, 23 August Reply

    I totally agree that greed and ignorance are the primary reasons kung bakit nakakapasok tayo sa traps ng mga scams. I think ignorance is the number one.

    Thanks a lot po for sharing this great article.

    Keep it up po!

    • Nolan Lazaro
      Posted at 16:48h, 23 August Reply

      HI Jun Pasion! Thank you for reading my blog post for today. Kindly help me share the post pra ma-inform ang mga friends and family natin on how to avoid scams. Thank you

      Nolan

  • Investment Scam ruined the life of an OFW - Super OFW Investor
    Posted at 14:08h, 24 August Reply

    […] People need to be aware on how to avoid Scam, If you want To learn more about Investment scams and how to avoid it CLICK HERE. […]

  • Marie Santiago
    Posted at 07:47h, 25 August Reply

    tama po kayo sir nolan yung kakaulangan nag kaalaman sa pag kung papaano nga ba ang proseso ng investment. ..karamihan po kc nasisilaw sa matatamis na salita na bigalaang kikita ng malaki ang ipupuhunan ng wala man lang kahirap hirap.. salamat po sa informasyon nyo Sir Nolan pra sa dagdag na kaalaman malaking tulong po ito…. keep up your good work . mabuhay po kayo nd God bless you po.

    • Nolan Lazaro
      Posted at 21:39h, 27 August Reply

      HI Marie! Thanks for reading my personal finance blog 🙂 I am a former OFW din and I know how hard it is to work abroad..kaya ako galit sa mga scammers e… 🙂 help me share my post, Thank you!

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