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.
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.
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.