The past several decades have created an opportunity for the average investor to move their funds offshore. From basic savings accounts to high risk investing, almost anyone can get in on the action.
Where there are people with money there are con artists looking to separate them. Historically the scams involved precious metals, penny stocks, coins, mining, currency speculation and foreign business opportunities. More recently, the hot investment scams involve the reconstruction of countries emerging form conflict.
It can be extremely difficult, even impossible, to recover funds lost to international investment fraud. Differences in marketplace regulation make even mainstream investments risky. Here are five keys to protecting yourself from international investment fraud.
Ignore the hype
Domestic or international, you should never invest in anything simply because the cool kids are doing it. Hot investments are the first thing con artists jump to copy. Ignore the hype, look past the headlines and remember what your investment goals are. If the opportunity seems too good to be true, or doesn't fit with your goals then pass it up.
Investigate them and you
You can't decide what is best for you if you haven't determined what your investment goals are and what level of risk you are comfortable with taking. Do your homework; investigate what you need now and in the future so you have standards to hold the investment opportunities up against. Then, investigate them. What regulations govern the investment? Are you protected? How do you resolve issues? What country, what administration, what department? It's important to know all the details of who you are dealing with now and who you will have to deal with in the future should issues arrive.
Do you have to go international?
Oftentimes, international investments offer lower returns on your investment compared to domestic investment options. Coupled with the higher risk involved with international investing, it is important to evaluate why you want to go offshore.
Check their record
Overseas investments promoters are not exempt from state and federal requirements regarding registration. Check with your state securities agency for complaints. You can also inquire with the Better Business Bureau (BBB) to check for any record of prior customers' experiences with that investment company.
Common Sense goes a long way
You know there is not ocean front property in Kansas. You wouldn't invest in a ski lodge in Mexico. Don't fall for shiny brochures or flashy websites that look legitimate. Look for the contact links, the icons that show affiliation with known business organizations, and listen to the voice in your head that is trying to tell you that you shouldn't invest in rice fields in the Sahara. The more urgent the promoter is, the more likely they are to be frauds.
Investing can be fun and exciting. It can provide amazing returns and help you feel more secure about the future. Don't risk the pleasure of taking a calculated risk and generating profit at the expense of jumping on an exciting hyped up international investment scam.
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5 Keys to Protecting Yourself from International Investment Fraud
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