The signs to detect a scam investment are:
– Very high returns. If they offer a percentage of profitability much higher than in any other type of investment, we must ensure that it is true and investigate the agency.
– They do not have information about the market or studies that they can show about their company to show their trajectory.
– If they try to convince that the investment does not involve any risk and that it is 100% reliable.
– To know the best investment strategies, we must take our time, so it is not reliable if the agency pressures us when making decisions.
– They have little knowledge of the real estate market and use complex words to impress and seem to dominate the subject, but at the same time they also use it to not be clear with the explanations.
– If they want you to invite more people to invest and also offer commission for it.
– Not present legal guarantees and that the company is not supervised by the CNMV, Banco de España or any equivalent institution.
– If it is difficult to get legal information about the company.
– If they contact you through email with insistence so that you do not miss the opportunity to invest in their company. No financial institution can contact us without our prior authorization thanks to the data protection law.
– Regular earnings. If at the beginning the earnings we have after the investment rise regularly month after month, regardless of the current market condition.
– Unauthorized transactions, lack of money or other errors in your account.
– If you try to sell us a value without documentation, since you may be selling us unregistered securities.
Scam investment can be presented in several ways, but usually the most common securities scams are given as follows:
– Pyramid schemes: Scammers ensure that our investment becomes very profitable in the short term, when in reality they make a profit by recruiting participants for the program. In this system there comes a time when you can not recruit more participants.
– Anticipated fees fraud: They play with the hope of the investor, believing that the mistake he made with a bad investment can be remedied. Scammers offer a tempting price for worthless shares of the client’s securities portfolio, but first they ask for an advance payment for the service fees and thus keep the money and disappear.
– Inflate and flee: Scammers buy shares of little value and try to negotiate with them making them believe that their value is much greater, when in reality these actions are worthless and then the scammer disappears.
– Ponzi schemes: The scammer collects money from new investors to offer it to investors from previous stages, instead of investing or managing it.