Wednesday, 2 November 2016

Important to know: 7 most common investment scams

Keeping money safe is always a good idea. Therefore, it is of significant importance to make sure you invest into trusted funds and, preferably, with a financial adviser backing you up. Whether you are with Just Service or not, we would like to bring your attention to a 7 most common investment scams to avoid.

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Carbon Credits
Businesses buy credits to balance their carbon emissions and these can be traded. Carbon credits keep reappearing from time to time giving conmen a chance to sell them at a price higher than their real value.

Death Bonds
An individual with a critical illness agrees to sell his/her plan for a lump sum which is lower than the sum that needs to be paid after his/her death. Later, the investor is supposed to get the insurance payout; however, if the person lives longer than expected the money can be tied up for years.

As appealing as it may seem, it is extremely hard to verify what you are really investing in.

When it comes to loans, the most important part investors must pay attention to is regulation. Otherwise, it is hard to know if money is going to a trustworthy borrower and monthly reports are not being faked.

Ostrich Farms
Back in the nineties, as a result of mad-cow disease paranoia, thousands of people invested in ostrich farms believing its’ meat will become popular. Millions of pounds were lost as some of the farms did not exist. 

Ponzi Schemes
Investors are paid returns with their own money or money paid by subsequent investors. Ponzi schemes are one of the biggest scams of all time.

Structured Product Mis-Sales
Structured products offer returns are dependent upon stock market returns; however, many companies have been fined for mis-selling these products with the returns based on the performance of risky investments yet are marketed as a way for careful investors to get better returns than their bank account.

If you have any questions regarding your savings, investment or pension plans and do not know who to ask, get in touch with us by requesting a call back and our team will be happy to assist you.

All content provided is for informational purposes only. Just Service Hong Kong makes no representations as to the accuracy or completeness of any information contained or found by following any link. Just Service Hong Kong will not be liable for any errors or omissions in this information nor the availability of it. Just Service Hong Kong will not be liable for any losses, injuries, or damages from the display or use of this information. This policy is subject to change at any time.

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