In the age of the internet there should be little chance of getting scammed by fake investment companies, yet every day hundreds of people fall for scams, some don’t even realise for years until they try and claim their return… so how is this happening?
Many people still dive blindly into investments that just sound too good to be true, mesmerised by glossy brochures and slick websites they give their hard earn cash away to conmen based in central Amercia, Africa and the Costa Del Sol, it happens daily.
I personally have been involved in alternative investments for over 10 years, way before the term became so popular and have never been scammed! why? I simply do my research, mainly on my PC. 21 million households in Great Britain have Internet access, that’s 80% of the population, with a further 10% having internet access at work so why people can spend 30 minutes checking out the company and/or the investment is beyond me.
This year I put most of my funds into Brazilian Social Housing. I was approached by a dozen so called UK based companies offering me this investment but after my research found of that only one UK company was officially building these homes, that company was the EcoHouse Group based in South West, London, and even though I’m based in Manchester I travelled to London to see first hand what the company was all about, well, why wouldn’t I? I was investing almost 70K and wasn’t going to send a cheque to a voice on the end of a telephone.
Last year I invested in Self Storage, again many companies tried to sell me this investment but after my researched i found that only one UK company ‘Store First’ had a working business model and was successfully paying out investors on a monthly basis. I only invested 4k so didn’t feel the need to visit the offices even though their head office was in Burnley just a 30 minute drive from my own office, why? Well I did enough research to be certain that my investment was a good one, plus with self storage, returns are monthly.
The bottom line is that nobody needs to get scammed, just be careful, if you feel that and agent is putting too much pressure on you, walk away as this should never happen and if your a novice investor stick to short term investments with a return within 12 months or better still monthly returns.
Also if something sounds too good to be true, then it usually is…
- 5 financial SCAMS that shocked the markets (rediff.com)
- First-time investor? These are the funds to consider (telegraph.co.uk)
- Only Half of Investors Trust Investment Management Firms to Do What is Right (edelman.com)