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Scams: What If You Wasted All Of Your Money?

Scammers are easily imagined as devil incarnate who try to steal people’s hard earned money. Trust me, the devil never needed to step in to do that.

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Forge Your Wealth is meant for education and entertainment and should not be used for financial advice.

Everyone likes to think that they will never be the victim of scams. However, statistics say otherwise. According to the National Center for Victims of Crime almost 20% of people in America are victims of investment scams and most experience some other form of scams.

History is plagued with instances where unfortunate people have lost significant money to scams. One of the most famous modern scams was by Bernie Madoff, who stole $65 billion from investors.

Who Are The Most Likely Victims Of Scams?

Unfortunately, the best potential targets for scammers are those who are more willing to take risks. As investors, you would have to be willing to take risks. However, there is a difference between taking risks with acclaimed companies who tell you straight forward that there could be losses and a complete stranger who says their investments are risk-free. The latter is obviously more suspicious.

Despite these differences, investing always requires putting trust in a company to utilize your hard earned money well. That may be disturbing, but think of how many things you do in life without trusting anyone else? You trust farmers, and food processors to make sure the food comes to you healthy and safe. You trust transportation specialists to get you to places safe. In case you forgot, you trust doctors to stay true to their oaths and not inject you with fake medicine, or worse poison. Surprisingly, you even trust scientists, people like me, to obtain knowledge and use said knowledge to better mankind.

Final Thoughts

Imagine what your life would be without that trust. You would probably be a sustenance farmer. There is next to no progress in life being just a sustenance farmer. Similar to this idea, you will not likely make any progress on your wealth just taking care of all matters yourself. Let’s say that every investment is a scam, will that actually make your chances of having wealth be any less than by not investing in the first place? I have never heard of anyone even retiring semi-comfortably much less financially independent who never invested.

You need help to prevent yourself from becoming a victim of scams. Reading expert opinions and other stories will help you be prepared. I have linked a few books that talk about avoiding scams. While most of their advice is obvious, you will hear of stories in which will surprise you. In my next post I will talk about ways I avoid scams.

Author: Papa Foxtrot

Most of my life I was careful with money and learned where I should invest it. I was very lucky to have parents who taught me financial literacy when I was young. Unfortunately, I am very lucky because many people lack the financial literacy I know. The purpose of Forge Your Wealth is to teach people who are just starting out in life how to obtain their wealth or anyone who just realized they may need to learn more to handle their finances. I currently have a PhD in biochemistry, just started a job in industry (will not disclose where exactly for personal and professional reasons) and am currently married to the love of my life. I am one of the lucky few people in America who graduated with no student debts, my wife was not. Over the series of a little over 3 years we paid for our wedding with no debt and paid off her federal student loans.

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