10 Investment Frauds You Must Know

To achieve maximum profitability with your allocations, you need more than a vast knowledge of finance. After all, even with experience, there are still many investment frauds that require attention and caution.

Find out what are the main precautions you should take when investing, in order to avoid scams and financial losses to your portfolio.

Contents hide ]

  • 1What’s behind the market’s promises? 
  • 2What are the main investment frauds?
    • 1Financial pyramid
    • 2False investors
    • 3Transactions with cryptocurrencies
    • 4Financial coaches and their miraculous gains
  • 3How to avoid falling into investment fraud?
  • 4How to escape financial fraud with Magnetis

What’s behind the market’s promises?

It is common for many expectations to arise regarding the earnings from your investments. That’s because investing ensures more financial security, in addition to making it easier for you to achieve your main goals .

Anyway, when exploring the best strategies, it is important to be aware of possible frauds that could put your entire trajectory at risk. The same goes for suspicious proposals that constitute a conflict of interest , even if this is not explicit.

Therefore, the recommendation is to research references before making any decision. In this sense, if you have received – or found on the internet – offers that promise to multiply your money in a short time, it is better to take a step back and be cautious.

Remember that, to achieve results consistent with your investments, it is necessary to have expertise , in addition to applying reliable practices aimed at long-term profitability.

In other words, there are dangers to your contributions behind the miraculous promises, and investment fraud is capable of causing huge investor losses – often irreparable.

What are the main investment frauds?

To help you in your search for the most accurate strategies to achieve high profitability, find out what the main financial frauds are. So you can protect your investments and alert people nearby if necessary.

Financial pyramid

Pyramid schemes are one of the oldest and most common scams on the market. This fraud is usually sustained by the progressive recruitment of new investors, who will have to allocate a large amount of money or make purchases of products, with promises of exponential gains.

The problem is that, in practice, the logic is untenable. Gradually, victims of financial pyramids conclude that the account doesn’t close and that only the people at the top are actually benefiting.

fake investors

The internet has facilitated access to investments for many people. However, one of the disadvantages of this process is the popularization of false investors or influencers who recommend financial products or services – this, without any proof by CVM (Securities Commission) rules, which can cause great losses to the investor.

Likewise, it is necessary to be aware of fake professionals who take advantage of these situations to spread miraculous promises, directing the public to websites from which they receive commission and which can collect user data.

Transactions with cryptocurrencies

The criptomoedas can be part of a diversified portfolio, with great growth potential in the medium and long term, and contribute to the low correlation between assets.

However, as it is a niche that is growing in popularity, miraculous offers dominate the digital environment, even promising high daily returns, without any investment risk. In this sense, it is very important to know who to invest with and if you are willing to invest in assets like this, considering their volatility and risks.

Financial Coaches and Their Miraculous Gains

You were probably impacted by Bettina and her 1 million and 42 thousand reais of accumulated equity. His figure went viral and attracted many interested parties for such a remarkable feat – transforming R$ 1,520 into R$ 1 million, in just 3 years.

The story, despite having been a high-impact advertising campaign, proved false some time later. This shows the importance of not believing in miraculous speeches, which are usually based on completely unsustainable gains.

How to avoid falling into investment fraud?

Now that you know what the top scams in applied investing are , keep in mind some common calls and spiels you should be suspicious of in order to recognize and evade scams in time.

  1. Guaranteed return with little or no risk? – It is better to doubt, especially if the assets offered belong to variable income. The stock market, for example, will always be subject to risks and, regardless of its high return potential, no guarantee can be made at the time of investment.
  2. Refer three friends to earn a lot more – Unfortunately, it’s using this that many pyramid schemes get stronger, attracting more and more people to an account that simply won’t close. Although many serious business models are consolidated through referrals, be careful with proposals that place them as an exclusive condition for you to have a financial return.
  3. Do you need to buy something to be able to invest and have a return? – Similarly, dubious multi-level marketing schemes can coerce investors into making large purchases in order to obtain promised returns.
  4. Share data on any website – In order not to fall for scams, the recommendation is never to share your data on pages that do not belong to registered financial institutions. This is also true for the recommendations of non-regulated professionals, as we explain.

How to escape financial fraud with Magnetis

In order not to be the next victim of financial scams, researching references is essential, as well as knowing the values ​​of the institution with which you want to invest. The Magnetis is featured in the investment market by taking care of your money in a unique way, so you worry only with the results .

Unlike what happens in fraud, we reinforce to our clients that the investment process requires time, dedication and expertise , after all, it is only with an expert eye that the best results will come.

That means there is no miracle cure for your wealth. However, we want to help you achieve your main goals , with the support of an automated technology that chooses the most suitable assets for your profile .

Developed with the full support of investment specialists, our strategy is capable of carrying out more than 145,000 combinations, among more than 20,000 assets in the market, to develop a diversified portfolio , without risk of fragmentation and free from conflicts of interest .

In this way, the assets work in a balanced way, with minimized risks and great potential for gain. All to promote more emotional security when investing, without having to worry about all the steps necessary to obtain consistent results. You can leave this part with us.

by Abdullah Sam
I’m a teacher, researcher and writer. I write about study subjects to improve the learning of college and university students. I write top Quality study notes Mostly, Tech, Games, Education, And Solutions/Tips and Tricks. I am a person who helps students to acquire knowledge, competence or virtue.

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