Many Overseas Filipino Workers are venturing in a different investment company in the hopes of gaining an ample amount of profit. They gamble their hard-earned money for the promise of a high percentage of return on investment in little to no time. While some of them are lucky enough to find a legit investment company, others end up crying because their money sometimes falls into the hands of fraudulent people.
Nowadays, investment scams are scattered everywhere. They persuade people to invest money with a promise of huge profit in return for their investment. These scams usually target people who they think are empty-headed when it comes to investment.
At first, they will give their victims the expected amount of ROI to convince them that they are legitimate and trustworthy. Then, they will ask their victims to increase their investment. After collecting huge money, scammers will eventually escape leaving the poor victim’s pocket empty.
If you are an OFW who has a plan to invest in the near future, there are some points that you have to learn and consider. Here are some of the tips to avoid falling into scammers’ webs:
Educate Yourself and Understand the Business Model
There is nothing more effective to keep yourself and your money away from false investment than educating yourself about the ins and outs of the investment company that is inviting you. A real investment company should have a concrete plan on how to manage your money and how to sustain the future return on investment, not only for you, but for all its members. If they fail to clarify these matters to you, and if they get angry when you ask, then most probably, they are a scam.
Unrealistically High Return On Investment
No legal investment company can give you an exaggerated amount of profit. Even banks cannot give you 20 to 30 percent of return of investment in a short period of time like what scammers are promising. Real investments need time to grow. It will take years of patience before you earn the amount you want to have.
Usually, fraudulent people’s trick is to provide empty promises of a better life in no time. They will say what you want to hear, what you want to achieve just for you to open your wallet. If you encounter people like them, run and never look back.
Check the Background of the People Behind the Investment Company
Frauds usually hide under false names so you should be wary of that. Avoid doing businesses with people who have been involved in fraudulent works. Your reason for investing is to earn money so you should be careful with people you trust. Always seek experts’ advice for verification of identity.
You don’t earn money with just a snap. You work hard for that, so if you will entrust your money to someone, make sure they have a good reputation. Make it a habit of checking the credibility and track record of the people behind the company before investing.
Choose Investments that offer Product or Services
If the company has no product or service to offer, it is a scam. Countless of investments scams are now circulating where you have to recruit other people for you to earn income. They have nothing as a source of income but membership fee of new recruits. This kind of companies have a weak system as their profit only depends on new recruits or referrals. In time, when they can no longer recruit other people, the company will fall. So what will happen to your investment? It will also vanish along with the company.
Check For Government’s Permission to Operate
Real investments company should have the government’s permission to operate to ensure its legality. If the company is operating inside the Philippines, you should check if it is registered in the Security and Exchange Commission (SEC), otherwise, you should not involve yourself in this company. There are numbers of an investment company that were shut down because they failed to comply with SEC’s regulations. But you also have to remember that not all companies that are registered are legitimate. Do not use this as your only basis.
To sum up, all the tips boil down to one thing, be knowledgeable enough before investing. Your money is a fruit of your sweat and blood. Think wise and avoid investment scams.
