While you are looking for money making opportunities, it’s not surprised that you will bump into some investment or business opportunities that sound to good to be true. And then you realize that they are scams.
Fraud will never go away and it happened since the beginning of time. The only thing that changes is the “money making opportunity itself.”
It is reported in The Star that Malaysians lost RM845million to get-rich-quick (GRQ) schemes last year. And I believe the amount is also huge in other countries because these companies prey on human desires and weaknesses.
Here’s the fact: If you are not greedy, you won’t fall prey to GRQ schemes. Most of the time, we are attracted by the “unbelievable” returns you get from your investments. To top it off, you don’t do your own research and due diligence on the company involved.
Having been exposed to enough schemes, I have drawn from my past experiences that how one can avoid being a victim to GRQ schemes.
Scam Detector Checklist
Here’s a checklist to scan for suspicious schemes:
- If the returns are too good to be true, then they are. You have to be extra cautious if you really want to proceed. The best is to stay away the scheme like a plague. This advice alone can save your live!
- Don’t get too excited. After listening to a presentation (Men beware: as reported in the report, the companies now use scantily clad girls to persuade you into joining their scheme), give yourself some cooling off period. I’d suggest at least 72 hours. After which, if you are still feeling gung-ho about the scheme, don’t join just yet but find out more about the scheme. Be the devil’s advocate. If you are not convinced or satisfied with the answers, don’t join.
- Not your field of expertise? Stay away. If it’s something you know nothing about, stay away. If you are someone who knows nothing about gold, by all means, don’t touch it. Do you think it’s so easy to make money from something you don’t know? Do you think you can make impressive returns by solely depending on others to make investment decisions on your behalf? It sounds good as it’s passive income but you must realize that you don’t have a say in how your money is invested. Heck, even Warren Buffett has to monitor his portfolio, let alone us.
- Discuss with someone you can trust. Talk to your partner or friend who has your best interests at heart about the scheme. Someone who is impartial in the scheme. Get a fresh perspective from third party. It’s always true that sideliners have the tendency to smell something fishy faster than those who are approached with a scheme.
- MLM? Pay extra attention. I am not saying all MLM companies are bad. But if the opportunity works on a network marketing model, you’d better beware. Especially those companies without solid products. And many fraudulent companies are using MLM as the model to expand their business fast.
Above all, listen to your gut feelings. If you feel uneasy, this is a warning sign for you not to proceed. Most people choose to ignore internal signals only to find out later that they are being cheated.
This does not only apply to offline business opportunities but also online. If the investment scheme that you are investigating fails three or more of the above, stay away from it. Otherwise, be prepared to say good bye to your hard earned money.
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