Topic Consumer protection Recognising investment fraud
Has an unfamiliar caller phoned offering you the opportunity to buy securities? Have you obtained a particularly enticing investment tip via social media? Does an investment promise significant returns with no risk at all? Countless dishonest and fraudulent offerors can be found on the financial market. This article describes how fraudsters operate and how you can protect yourself from them.
How you can protect yourself
Always be careful when investing money. There are a few simple rules you can follow to protect yourself from scams on the financial market:
- Do not let anyone pressure or rush you. Take your time and seek advice from someone you trust if needed.
- Do not do business with offerors that fail to supply clear information. If you do not understand the contractual framework of an offer, steer clear of it.
- Before making an investment, check carefully whether a right to repayment is set out in the contract.
- If you have any doubts, do not invest. If you still have doubts even after receiving investment advice, do not invest under any circumstances.
