Nowadays, every day life is so complicated that many people get greedy and are lured to wrong investments. They are taken in by investment scams. This doesn't only happen in the Philippines but in any country in the world also. So how would you figure out if you're putting money in a legitimate business instead of a bogus one?
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? Here are the ways:
Most business scams promise high rates of interest on investments just a short period of time. Interest rates beyond 15% are normally offered to lure customers to invest their funds. 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 ranging from 15%-40% within the next 20-30 days. Naturally, a lot of people were attracted to the high investment yield. And these people are those individuals who did not do a background check for the company. So as not to get fooled by business scammers, one must look into the prevailing bank rate on deposits and investments. This will serve as a guide to people upon which is the on-going rate that is certainly acceptable to the corporate environment. This may seem conservative, but a return of less than 1% each month is considered extremely high in today’s business environment.
No Business Operation
Before putting money in other people’s business, one has to check whether there's any business operation which is being performed through the company. Scammers don't have any business at all. What they may have is only a bogus SEC certification, that is easily made by a non-legit businessman, too. Conducting a background check of the founders and the officers of the company can even provide you with information on the legitimacy of the business. Lawful company owners are usually the top business leaders in their own hometown or province. Their presence is always felt in any economic activity in their area.
No License to Sell Securities
Since SEC certificates are public documents, everyone can take a glance and perform some research. Having an SEC certification does not always mean that a company can already solicit funds then sell securities to potential investors. A license is needed to manage this step. Therefore, it's always far better to ask the SEC with regards to the business where one wanted to put their cash in.
Early investors are paid to lure other people to invest
Business scam owners usually lure their early investors to interact with other individuals whom they've known to invest in exactly the same way they did. The scammers motivate them by supplying a very high yield on their investment. This goes on until such time that there's no more money arriving in. Check payments to investors keep on bouncing back and so the investors discovered that the business enterprise was a hoax in the end. What exactly do we do in order not to be taken in by business scammers? We need to first think, investigate, and carefully study. We also need to speak with financial planners and bankers if we don't know anything concerning the investment. Checking into the legality of the business and the investment opportunity with the concerned government agency may also enlighten us on the matter. Remember that when in doubt, never place your profit in it. It's always best to keep it in other worthwhile economic activities.
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