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Investment scam is an industry in itself, and the bad guys have upped their game considerably. This article will enlighten you on how to stay alert whenever an investment opportunity is thrown your way.


Like many small-business owners and others, you may continually on the lookout for new opportunities to make money. For example, someone may have told you about a lucrative investment opportunity that almost sounds too good to be true. Before you’re tempted to act on it, remember that if it sounds too good to be true, it probably is.

Who wouldn’t jump for something that promises great returns with no sweating on your part? Smart people, that’s who. Even people who have experience with these types of investments sometimes fall for them. This is because it can be tempting to take the bait for a supposed opportunity that promises to inflate your bank account so you can leave the rat race behind forever.

It is no surprise that as every major industry continues to evolve, investment fraud evolves right along with them. Yes, investment scam is an industry in itself, and the bad guys have upped their game considerably. This article will enlighten you on how to stay alert whenever an investment opportunity is thrown your way.

Cold Emailing Can Be a Sign of an Investment Scam

Investment fraud schemes have continued to grow both in speed and strategy. Most of these scam investment brokers are highly intelligent people. They have the right education and excellent marketing skills. Plus, they package themselves as experts in major financial institutions. Because they are in business, they will not sit around and wait for you to locate them.

Investment fraudsters will reach out to you themselves, bombarding you with cold emails, frequent phone calls, and text messages. They are good at what they do, and if you are naive, you’ll be an easy target.

So never succumb to any offer made to you on the phone or via email, and never sign any transactional document right away. What’s more, even if the offer seems realistic, before you consider it do the following:

  • Inquire about the name of the individual or company, and write down their contact information.
  • Look online to find out if the individual or company is legally registered.
  • Conduct your investigation about the opportunity and only get back to them if you are convinced they are genuine.
  • Flatly refuse if they try to pressure you into making an instant decision. A legitimate business will give you enough time to consider your options.


Unrealistic Promises Are a Danger Signal

Scammers often present an attractive history of returns to convince unsuspecting people of the deal’s benefits. Usually, these returns are staggering consistent profits. That should be a red flag. Anyone with essential business knowledge knows that there is nothing like 100% instant return on investment or profits. If the returns are consistently high, then they are trying to lure you into a potential scam.

Even before the days of Bernie Madoff, Ponzi schemes were a part of the landscape. Moreover, they continue to proliferate today. One telling characteristic of a Ponzi scheme is that they all guarantee consistent returns. Promises that sound too good to be true are a red flag. Always remember that even the most successful businesses endure losses from time to time.


Investment Scammers Often Use Pressure Sales Approaches

Any reputable entrepreneur or investor should have a running business they can refer you to. Moreover, they should not pressure you with threats of “missing out” on the deal if you don’t sign in right away. You will need sufficient time to research the business, evaluate the offer, and decide if it’s worth it.

To be on the safe side, always involve a security litigation lawyer. It is true that some deals and offers have a limited closing time. However, you must never be in a hurry to jump in if you don’t feel convinced.

Some pressure strategies you should be wary of include:

  • Frequent calls made to you any time of the day.
  • Constant updates on limited opportunities left.
  • Repeated reminders of the deadline to close the deal.
  • Aggressive or abusive tone. Some may resort to abuses if you don’t yield immediately.


If you have invested your money with a broker or investor, there are federal laws that regulate how the investor controls and utilizes your money. However, if you realize a little too late that the deal was a scam, you should take legal action to recover your money. A reputable security litigation lawyer can take you through the entire process.