Don’t always trust the next big thing
GPB Holdings is being investigated by multiple state and federal bodies simultaneously, while there have already been accusations of the company running a Ponzi scheme on its investors. If you have lost money by investing in GPB due to the negligence of your broker, it might still be possible to recover your investment by filing a FINRA arbitration claim, with the help of the Silver Law Group.
The lesson to take away from all this is that dodgy investment schemes can often be presented as the next big thing by even investment brokers. If everyone is doing it, remember to beware of the herd mentality.
Fortunately, not every fraudulent investment scheme out there is as well choreographed as GPB was, which means that a simple verification check should reveal most of them to be what they are. Check the scheme’s and even your broker’s authenticity by verifying their credentials from the Official FINRA website.
The classic “too good to be true” investment scheme
If the investment scheme is being pitched to you with the promise of returns that no other legitimate bank or investment institution can even come close to competing with, it is without a shadow of a doubt, a scam to steal your money from you. The lure of “high returns” still manage to scam unsuspecting citizens, unfortunately, which shouldn’t really happen in this age of information. These are mostly targeted towards the less educated, rural and elderly population.
The non-existent guarantee
Now, most people know about the scheme we just discussed above, so fraudsters will often try to deceive people with the promise of “guaranteed” returns instead.
Mutual funds, direct share investments, etc., do not come with a guarantee because they are always subject to market fluctuations, which is embedded in the very structure of such investments. Therefore, when a share broker is trying to convince you to invest in a new company, with the promise of guaranteed returns, it’s a dodgy plan. Even if a company has huge potential, no legitimate agent in the US should be offering you a guaranteed return because guarantees do not exist here!
There is a time limit and it’s very short
Any fake agent trying to defraud someone is going to be in a hurry, except in certain situations where the scheme is particularly targeted to scam a rich person, group or even a company. In general, though, if it’s a limited time offer which will expire within a very short time, it is a sign to look out for.
Professional fraudsters are becoming more and more resourceful, as well as gaining access to technology that can be misused to make themselves seem legitimate even to probing government officials. Now is the time to be careful with your money and your investments.
DISCLAIMER: This article expresses my own ideas and opinions. Any information I have shared are from sources that I believe to be reliable and accurate. I did not receive any financial compensation for writing this post, nor do I own any shares in any company I’ve mentioned. I encourage any reader to do their own diligent research first before making any investment decisions.
Community Foundation Raises Money for Flood Victims in Como, Italy
The flood that hit Como has made headlines. The Community Foundation is now raising funds to help people affected. The...
The Fintech Sector in Argentina Now in the Spotlight: New Security Standards for e-Wallets
ABA and Adeba, two chambers of private banks, asked the Central Bank for greater controls and regulations for fintech companies...
The First Medical Cannabis Agricultural Cooperative in Argentina
While at national level the Law of Productive Cannabis is being debated, which will promote the constitution of Cooperatives that...
Enerbrain Collects €5.2 Million from EDF, Equiter and Azimut Digitech Fund
The investment round comes after a record year for Enerbrain, which has seen its revenues grow by more than 300%...
Buffett Made This One Big Mistake. Don’t Let Yourself Do the Same
When an investment opportunity like AR and VR comes along, it can be hard knowing when to jump. Even if...
Business5 days ago
Forget Facebook (NASDAQ: FB) and Apple (NASDAQ: AAPL): Virtual Reality (VR) and Augmented Reality (AR) Investors Should Snap Up XRApplied (CSE: XRA) Instead
Business6 days ago
Credit Suisse: Major Bank Admits Gold and Gold Mining Stocks are Undervalued
Business6 days ago
What Artificial Intelligence Means for Us Today?
Crowdfunding6 days ago
Four Million Round for the Italian Real Estate Crowdfunding Portal Walliance