Research the company and its reputation: Before investing, research the company and its history, including any complaints or red flags.
Check the credentials of the investment professional: Make sure the person offering the investment opportunity is licensed and registered with the relevant regulatory bodies.
Be wary of high-pressure tactics: Be cautious of anyone who insists you invest immediately or guarantees high returns with little or no risk.
Don’t rely on unsolicited offers: Be cautious of investment opportunities that come out of the blue, especially those that promise high returns.
Verify the investment’s authenticity: Get a second opinion from a financial advisor or consult the securities regulator to confirm the investment is legitimate.
Ask for written materials and read them carefully: Legitimate investment opportunities will provide written information about the investment and its risks and returns.
Understand the risks involved: Make sure you understand the risks involved with the investment and that you’re comfortable with them.
Diversify your investments: Don’t put all your money into one investment. Spread your investments across several opportunities to reduce the risk of losing all your money.
Don’t wire money to strangers: Be wary of investment opportunities that require you to wire money to someone you don’t know.
Trust your instincts: If something seems too good to be true, it probably is. Trust your instincts and don’t invest in something that doesn’t feel right.