National Safety Day: 3 Investment Scams You Need to Know!

Investment related scams

As we approach National Safety Day, learn to spot the most common investment scams and protect your wallet!

Are you among the many who have received an email or a phone call promising quick and easy money? Well, before you act on the call, consider this: according to a Livemint report, a staggering 42% of the Indian population has experienced financial fraud in the last three years. It is scary to think that unsuspecting individuals are being lured into these scams daily, with scammers playing psychological tricks to gain their trust and ultimately steal their hard-earned money. 

As we approach National Safety Day tomorrow, the 4th of March 2023, we must be aware of the investment scams which tricks you into acting, leading to losses. 

So, let’s begin. 

Affinity Fraud

Imagine you are scrolling through your WhatsApp or Facebook group, and suddenly someone starts boasting about their high investment returns. They pitch a scheme that seems too good to be true. Well, that’s because it is! This is called Affinity Fraud. Scammers target a group of people with similar interests and lure them by promising safe and high returns. If they convince even one group member, it is enough for the rest of the group to follow. 

Don’t fall for it! Protect your money and think twice before investing just because someone seems trustworthy.

Internet Investing

Are you on social media looking for the perfect investment opportunity? Beware! Scammers are using the same platforms to target unsuspecting victims. They will promise to help you make money. Before that, they will ask for your email and phone number. Then, they will sell your data, and you will start receiving emails from fake representatives of reputed companies. They will offer to transfer your money into a better investment option and help you to do so. Or they also tell you that they will help you transfer the proceeds of your existing investments and ask you to pay a nominal fee. 

You must not fall prey to unsolicited emails from anyone offering great investment advice. Before you act, don’t forget to call customer service or your relationship manager of the concerned organisation to verify the email’s authenticity. 

Pyramid Scheme

In this scheme, the scammer tells you that you can quickly make a fortune! All you need to do is recruit some friends and family members. 

It’s like a never-ending chain reaction, where the scammer at the top of the pyramid convinces you to invest your hard-earned money. They lure you in with the promise of high returns on investment in a short time without any real work on your part.

The catch is that you need to recruit more people to join the scheme, and they need to recruit even more people. It’s a vicious cycle that never ends; the only ones who benefit are the scammer sitting at the top of the pyramid.

It would feel good initially, but as time passes, you are left with nothing but empty promises and a lighter wallet.

The sad truth is that pyramid schemes are designed to prey on people’s greed and desire for easy money. But you might have heard the old saying, there’s no such thing as a free lunch. So, the next time you hear someone trying to sell you the dream of easy money through pyramid schemes or network marketing, run in the opposite direction. 

Remember, hard work, determination, and genuine investments are the only way to achieve success. 

What Should Investors do?

Investing scams can be devastating, but you can protect yourself and your investments by practising due diligence and choosing SEBI-registered brokers and advisors. 

If you want to invest your hard-earned money wisely in the stock market, invest with Teji Mandi. Teji Mandi is a SEBI Registered Investment Advisor who makes investing in the stock market easier. 

That’s it for today. We hope this newsletter will help you avoid investing scams and lead you towards the right path. Don’t forget to share it with your friends!

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