Red Flags 

There is no such thing! No one can offer you a guarantee – all investing involves some level of risk. Usually, the higher the returns, the higher the risk. Do your homework - research advertised investment opportunities to lessen the risk of falling victim to a scam.

You can sometimes defer paying taxes, but you can’t avoid them. This type of deal is often pitched as a secret, and for reasons you might not expect. By asking you to keep the deal to yourself, scam artists know you won’t have to answer hard questions from family, friends or financial advisers who might see through the scam. If you are persuaded to send your money overseas, it may be difficult, if not impossible to get back if something goes wrong.

Yes they can! Many investment fraud victims are introduced to the scam by family, friends or co-workers. This approach relies on the trust you place in your friends and the fear of missing out on a “too good to be true” opportunity. Scam artists target religious, ethnic, or close-knit groups by working their way into organizations and befriending members in order to rip them off. This is often referred to as “affinity fraud”. Always check out any individual or company offering you an investment opportunity.

These scams are pitched as opportunities known only to a select few who are said to be making a lot of money. The scam artist convinces you that he or she has access to this inside information that the general public does not have. You might be invited to a seminar where salespeople make misleading claims about a secret or exclusive technique for building wealth. Look carefully at what exactly is being offered and conduct a background check with the ASC to find out if there has been any disciplinary action or enforcement action taken against the company and/or individual, and if they are registered.

Scam artists use this tactic to pressure you into making a quick decision and try to exploit your fear of missing out on a valuable opportunity. Take the time you need to research any investment opportunity and get independent third-party advice.