Nowadays, the world is so complicated that a lot of people get greedy and are lured to wrong investments. They fall prey to investment scams. This won't only happen in the Philippines but in any country on the planet too. So how do you determine if you are putting your money in a legitimate business instead of a bogus one?
Nowadays, working life is so complicated that the majority of people get greedy and are also lured to wrong investments. They fall prey to investment scams. This may not only occur in the Philippines but also in any country in the world as well. So how would you figure out if you are putting money in a legitimate business rather than a bogus one? Here are the ways:
Most business scams promise high interest rates on investments in just a short period of time. Interest rates beyond 15% are normally offered to lure customers to invest their money. Some supply a “double your money” guarantee to draw in investors. One good example is the Aman Futures Group in the Visayas and Mindanao. They offered interest rates between 15%-40% over the next 20-30 days. Naturally, many people were fascinated with the high investment yield. And these people are those who did not do a background check on the company.
In order not to get fooled by business scammers, one must look at the prevailing bank rate on deposits and investments. This will serve as a help guide to people as to what is the on-going rate that is acceptable to the corporate environment. This sounds conservative, however a return of less than 1% a month has already been considered extremely high in today’s business environment.
No Business Operation
Before putting money in other people’s business, one must check whether there exists any business operation that is being performed by the company. Scammers have no business at all. What they have is only a bogus SEC certification, that is easily made by a non-legit businessman, too. Carrying out a background check of the founders along with the officers of the company may also provide you with information about the legitimacy of the business. Lawful companies are usually the top business leaders in their own individual hometown or province. Their presence is definitely felt in any business activities in their area.
No License to Sell Securities
Since SEC certificates are public documents, anybody can have a look and do a little analysis. Having an SEC certification does not necessarily mean that a company can already solicit funds and sell securities to potential investors. A license is required to manage this step. Therefore, it's usually better to ask the SEC regarding the business where one wanted to place their money in.
Early investors are paid to lure other people to invest
Business scam owners usually lure their early investors to engage other individuals whom they know to invest in the same way they did. The scammers motivate them by providing a very high yield on their investment. This goes on until such time that there is no more money arriving. Check payments to investors keep on bouncing back and then the investors saw that the corporation was a hoax in the end.
So what do we do in order not to fall prey to business scammers? We need to first think, investigate, and carefully study. We also need to seek advice from financial planners and bankers if we hardly understand anything with regards to the investment. Checking into the legality of the business as well as the investment opportunity with the concerned government agency will also enlighten us on the matter. Remember that whenever in doubt, never put your profit in it. It is best to keep it in other worthwhile economic activities.
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New York based founder of Philippine Virtual Assistant Network - Philippines largest community of Filipino Virtual Assistants with more than 13,000 members. He also founded PVAN Academy, VA Internship Program & Web Internship Program, an online learning & personalized mentoring website that caters aspiring virtual professional & web designers to work from home. Likewise Jay is also the Principal of Remote Virtual Assistant Agency, a virtual assistant staffing agency which helps several Filipinos to have a work from home job which currently serves several clients around the globe. As an author, he published Be a Rockstar Virtual Assistant | The Ultimate Guide in Working Online. on amazon.com to help aspiring virtual assistant to work from home Follow him on Twitter, Connect with him on Facebook, Linkedin or visit his personal website www.JayPasana.com