COLUMN: How to spot the fakes '“ is it too good to be true?
While there are lots of legitimate investments out there, your friend is right to warn you. Dreaded Letters and cold-calls from unknown companies can be a scam.
Investment opportunities can ask for large sums and you need to be completely confident before you put your money in.
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First, do your research on the company. Investigate their website thoroughly and pay attention to where the company is registered. If it’s outside the UK, be on your guard - if it is a con, it will be difficult to get your money back. You could also look for industry bodies that oversee the sector to assist you with investment advice.
Next, check if the offer is realistic. Do some comparisons among similar companies for what the usual return is. If it looks too good to be true, it probably is.
Finally, look out for high-pressure sales tactics. The literature may ask you to contact them by phone. If a salesperson puts pressure on you to complete the deal straight away, or tells you not to tell anyone about it, it could be a scam.
Citizens Advice Derbyshire Districts offers free, confidential and independent advice on any subject and you can call in person or contact us by telephone.
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