You may come across many threats and dangers in the world of finance. Let’s have a look!
Bermuda! The place of seas, islands and natural beauty! Also the place of one of the vertices of a geographical triangle where terrible “monsters” have swallowed ships, people, airplanes whole never to be found again!
Finance also has its own Bermuda triangle of three dark vertices:
- Unknown Companies.
- Lack of common sense.
- Too good to be true returns.
Suddenly find yourself hearing or reading of a scheme from an unknown company? Well, stay cautious and stay alert. Beware! because these might be front companies for frauds and schemes by some meticulous scamster! Such companies might claim to have the “backing” of many well known people.
Remember, that a photo with a great personality does not turn a person’s company as “good” or “very secure” or with a “good credit rating”.
These companies might also claim to be subsidiaries of bigger well known firms. Remember how we treat all China items as cheap and low quality with a “use and throw” attitude towards them. That’s how these companies can turn up in reality!
Lack of commonsense:
Any person willing to invest in any investment opportunity does his research before investing. Its not that you will find information down to the last detail but a general internet assisted search of the company, the investment opportunity and the returns and the amount invested by other people in the scheme, the fund manager and such basic details are always found out. Some more mature investors might also go to the extent of checking SEBI or other regulator websites to be sure of the authenticity of the said company’s services.
While a meticulous check into the most minute details of a company is never needed a basic check should always be done.
“Too Good To Be True” Returns:
Unless you have been living under a rock, you must have heard of schemes offering ultra high returns and sky high promises. More recently the Saradha Scam was one such incident.
Beware of the “Money Double” & the “Money Triple” Schemes offered to you. They will reduce your investment to zero in quick time. It’s a fraud!
Remember your money will double if you invest it judiciously and patiently and wisely and NEVER WILL IT DOUBLE in a jiffy.
Stay safe. Stay alert!