WISE INVESTING

"Don’t put your eggs in one basket,” so goes the popular adage. Whoever coined this saying is a wise investor. He knows the risk of putting all his cash in one kind of business. A wise investor is veteran in his field; he is already seasoned with experiences. I haven’t read article describing point blank the qualities of a good investor but here is my observations;

1. A wise investor calculates the risk
2. limit his cash
3. spread his investment
4. carefully watch the movement of the business

Investment scam

Oftentimes, the newbie poses as an easy target of scammers. He is promised with easy money, quick wealth and high yield interest in exchange for huge investment cash. If he is not lured to these kinds of baits, the scammer would utilize the bandwagon convincing technique that is, he would mention the names of popular celebrities or high ranking officials who have joined their investment scheme, assuring the victim that those known people were wise enough to join their group and so must the victim. Or else, the scammers would entice the whole neighborhood of the victim to join the group, the refusal of the victim not to be outwitted by neighbors could probably convinced him to join, thinking if the investment scheme fails he is not alone.

Ponzi or pyramid scheme

Ponzi or to others pyramid scam is an investment swindle in which some early investment are paid off with money put up by later ones in order to encourage more and bigger risks. With the promise of high yield interests, the victim is enticed to put his money in the investment scheme. He receives the interest in full at the first 5 months or more after investing, but the succeeding months entails a series of bounced checks until such time a scammer’s bank account has drained with cash and before the victim discovers the scam, the scammers were nowhere to be found.

A retired employee has invested all his retirement pay in the ponzi scheme. A contract worker has invested all his savings to pyramid scam These are only a few of those whose who sought fortune in a high yield interests investment scam.

Online scam

If there is fraud and misleading advertisement in print and television, more so in cyberspace. Online advertisers produce more exaggerated quick result, false claims, misleading information of huge earning and disguised ads.

For instance, ads that promote a quick and easy weight loss products and programs are unlikely not able to delivers what they promise.

Home business opportunities such as stuffing envelopes and handicrafts assembly At most, all you get for your money is the instruction on how to convince others to send you money by advertising envelope while in handicrafts assembly, their purpose is to get you pay for the kits and you never pass their quality standards , in the end you earn less than you expect.

Online survey which says they have a list of survey companies and ask you to pay for these lists. They also promise big earning opportunity. Actually you can get these lists for free and be paid directly by survey companies but in minimal amount and sometimes in points which is redeemable for a gift certificate.

Data entry job- the scam here is that they will ask you to pay an enrollment fee of $49.00 a one time pay and a guarantee earning of $250 day. They claim that they are compiling mailing lists for advertisers. Your job will includes typing name and address or email address to type onto their form and you will be paid $20 per form you completed. The logic here is that as worker, you should be the one being paid by the company and not the other way around. Besides, bulk mailing companies have already data bases full of names and addresses and they already access to basic informations, which means they do not need your service and why should you be applying to middleman when you can apply directly to companies.

Tips-off to Fraud

What I mentioned here is only a few of the many scams in cyberspace. Sometimes it is hard to pinpoint what is really legitimate and what is not, but the same signals that tips you off to recognize frauds in print and television are more apparent to cyberspace:

1. Overstated claims of product effectiveness. The frequent use of the word “hype” and “hot” to describe an investment opportunity is leading to a scam

2 Exaggerated claims of potential earnings or profit, the promise of
thousands dollar earning with minimal effort. A guaranteed result.

3. Claims of “inside” information and connections with big companies.

4. Pump and Dump” promotions of cheap stocks promising high return

5. Promotions for exotic investments such as ostrich farming, goldmining, or wireless cable TV

Before you make any decision to buy a product , be careful, Check various sources and reference guide. Be analytical and logical enough to assert the truth and validity of the ads.

If you have any complaint with the product contact the company where you get the product and clear up to them about your complaint if they refuse to cooperate you can ask the service of the following;

If you have a question or complaint about an online ad or promotion, contact your commercial service provider. You also may file a complaint with your local consumer protection office, state Attorney General, or the Federal Trade Commission. Write to: Correspondence Branch, Federal Trade Commission, Washington, DC 20580. Or, contact the National Advertising Division of the Council of Better Business Bureaus, 845 Third Avenue, New York, NY 10022.

• If you have questions about whether an investment sales person is licensed or an offered security is registered, contact the Office of Consumer Affairs, Securities and Exchange Commission, (202) 942-7040.
  
• The National Fraud Information Center maintains a toll-free Consumer Assistance Service, 1-800-876-7060, to provide information about telephone or mail solicitations and online scams. They also tell consumers how and where to report fraud and how to file complaints.
  
• The Federal Trade Commission publishes free brochures that explain fraudulent sales practices and how you can avoid them. For a complete list of publications, write for Best Sellers, Public Reference, Federal Trade Commission, Washington, DC 20580; (202) 326-2222; TDD (202) 326-2502.
  
  
  
  

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