You’ll Keep Falling For These Financial Scams If You Don't Do These
By Elochukwu Favour
Money! Ego! Cash! Mula! More Money!
I am sure your eyes widened when you saw the word “money.” We all want money. That's why we keep looking for more ways to increase our income. We take up extra jobs, learn and monetize new skills or invest in other people's businesses or companies. Most people prefer to make investments because it is less stressful, more guaranteed, and profitable.
But do you know you could lose all your life savings or money in a minute, hour, day, month, or year if you invest in financial scams? You reading this might have fallen victim either because of ignorance — or greed. Or did you not lose money to MMM, Racksterli, Binomo, Twinkas, Ethereum Million Money, Loom, and others?
The sad thing is that you may still lose money in the future if you don’t have the right knowledge. So to avoid falling for scams, ensure you do the following:
1. Check the ROI the company is offering
ROI is simply the interest plus capital you get after investing for an agreed period of time. The ROI should be realistic. If someone tells you that an investment scheme will give you 100% of your investment in a week or a month, RUN! The ROI should be reasonable. An ROI of 30-40% in a year seems reasonable.
2. Check the company values
Ask yourself how the company you're investing in makes their money. Does the company sell any products or offer any services? How will they increase your money? If you must bring two people under you before earning, that's a red light. You have to be careful to avoid falling for a Ponzi scheme. A celebrity endorsing a company or project does not automatically make it safe for you to invest.
3. Check the company’s registration status
Is the company registered properly? Every investment company should register with the Securities and Economic Commission or other appropriate financial regulatory bodies. But it is important to note that sometimes regulatory bodies may flop in their duties and approve scam companies. This was how Ugandans fell for several crypto Ponzi schemes.
4. Check for reviews
Check for company reviews to see whether they are trusted. Note: Some companies can put up fake reviews that put them in a positive light. So make sure your checks are thorough. Nairaland is a good place to check for unbiased reviews.
5. Stop being greedy and ignorant
Most times, it is your greed that leads you to fall for these financial scams. You want your name on Forbes billionaires list in a day, week, month, or year without putting in the work. It doesn’t work that way. Start little by little. Being financially free is a marathon, not a sprint.
Also, never fail to do your research before investing your money anywhere. Be informed and stay informed.