Certainty is becoming a rare thing these days, especially when it comes to investment opportunities. The last few years have proven that things can shift very quickly even in the most stable markets. Many Americans are questioning if the economy is headed for a recession due to market turbulence, high inflation, and imminent interest rate hikes that would make borrowing money more expensive. Consumer prices have risen as a result of high inflation, while the stock market has been shaken by the conflict in Ukraine and supply chain concerns.

In February, when most people were focused on the situation in the Ukraine, The White House released almost 1,300 pages of papers from a year-long research of the economic risks generated by the global supply chains, that shed light on how dependent the U.S. economy is as China controls many goods and supplies that are critical for the U.S. (including strategic minerals for energy production and pharmaceuticals for public health).

This is why people want to invest their hard-earned money in something that has the potential to be a good long-term investment. While there’s always a risk that stocks will lose value, the greatest risk comes from scammers. Fraudsters know well that when people feel uncertain about a recession, war and other crisis, they tend to search for ways to protect their capital from whatever the future may bring. Some look for big “once in a lifetime” opportunities, other for more conservative investments. Either way, many of the “opportunities” advertised online are actually operated by scammers who will attempt to defraud you of your savings.

In this context, people are losing all their money, including life savings, pension and inheritance, many to cloned fake firms. Sadly, if there’s money to be made, someone will do it. Investment scams can result in a devastating loss of money, but they can also be difficult to detect because they are frequently concealed behind what appears to be a legitimate money-making opportunity.

Some of the steps you can take to avoid investment scams are:

Be cautious of offers that appear to be too good to be true. A safe investment will most likely not make you wealthy overnight, and decisions shouldn’t be taken when pressured. Fake investment proposals are becoming more elaborate, so it is important to verify if the company is legitimate before investing any money. A company background check and due diligence will reveal information on the owner, legal registration, and other fundamental details that will assist you establish whether or not the firm exists.

Verify the source of the offer. No one denies the legitimacy of Tesla, but if you’re being offered shares of a company you’re certain is real, you should double-check the individual who is making the offer. Is this individual a certified stock broker? Is it possible for this person to submit verifiable documents? All of this should be thoroughly examined by a professional private investigation firm.

Scams in the investment world happen at all levels, regardless of how skilled an investor you are or how long you’ve been dealing with international commerce. It’s always best to be well-informed before taking any major steps!

C. Wright

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