GO IN WITH YOUR EYES OPEN
Before entering into an investment or making an ‘online donation’ with the hope of high returns, ask the following questions: 1 How are returns generated?
Legitimate investment schemes are transparent. You should be able to understand the underlying assets. Even when derivative structures are used, you should be given enough information to understand your risks and potential returns. 2 How aggressively are you being pursued to join? Legitimate investment schemes generate returns from invested assets, but fraudulent schemes rely heavily on funds from new members to pay existing members.
3 How do returns compare with other similar products? If returns are unusually high, be very cautious.
4 How is the scheme regulated and audited? Regulators and auditors are not foolproof, but the lack of a solid regulatory structure means that no one can hold your scheme accountable for its practices or returns.
DO YOUR RESEARCH AND DO NOT SIMPLY CHOOSE TO BELIEVE WHAT PEOPLE PROMOTING A SCHEME AND ITS WEBSITE TELL YOU