Business Venture News

Scams have always existed and will always exist, because its origin is not a business model, but a moral problem. Bernard Mad off defrauded the best investors on Wall Street, as well as a Greek merchant defraud Socrates had with rotten olives. But how many people may be fooled? Why anyone would give their money to the Nigerian prince?

There may be many reasons, such as overconfidence, greed or social pressure, but what is certain is that many ignore the warning signs. Even the best investors can be fooled with a good business presentation. So, here are some signs that always have to see if they are asked to invest in a business.

1. Incredible profits in a short time, with minimal risk.

If the business before them telling them you is guaranteed the return on investment without risk of losing it, beware. The return on investment and risk always go hand in hand, no one without the other. The risk may be unforeseen market fluctuations or their own lack of drive your business, but there must be risk. There is no “zero risk investment.”

2. Pressure to invest.

This must be the most common sign in all fraud. If you do not invest today will be too late. In my opinion, if not give them a few days to think about it, something must be wrong. No one should make a financial decision without proper diligence. Using pressure as a motivator is a clear and common sign of possible fraud, because the scammers know well that if given time to investigate, not fall. Any investment should be evaluated with a cool head and over time they deem necessary.

3. Tips from a stranger.

I’m not sure why anyone would want to take investment advice from a stranger. They do not know, you know nothing about, or on its expectations. I would not let a stranger give me advice on my future career or my health plan. If the stranger is a person recognized is normal that they can trust any more, but just always have to be careful who they offer an investment. Remember Mad off was also well known.

4. The “data” Int.

If anyone has inside information about a company beware. Not only can it be an argument to convince them, but in most countries it is forbidden to take advantage of privileged information, i.e. non-public information. In addition, the trick of internal data of the argument is usually accompanied by “your touch me”, which is limited contact with the alleged investment company. Any business where told not to talk about it with anyone is certainly a scam.

5. Lack of information.

If a business is legitimate, must be able to offer all the legal documentation required. They must be able to review their public records, business plans and relevant financial documents. Otherwise, I recommend that you avoid investing.