When the scheme is a scam: Top tips to protect your money against con artists

The Financial Conduct Authority (FCA) UK urged people to be vigilant when signing up to investment schemes, particularly online. Contracts for difference, forex trading, and cryptocurrencies were all named by the FCA as markets to be particularly cautious of, largely because these types of investments are frequently promoted online and through social media channels.

Here are a number of ways to help protect yourself from this threat.

1. Hang up on cold callers

According to figures from insurance giant Aviva, 2.7m more cold calls were made last year compared to 2014, as scammers hoped to take advantage of the pension freedoms by conning people out of their savings.

2. Seek another opinion

According to figures from Killik & Co, more than half of us invest without consulting anyone else first, including family members. Make sure you keep your family in the loop too – they might be able to spot bad signs and act as a backstop if anything gets out of hand.

3. Don’t feel time-pressured

You should never feel rushed when making a decision about where to invest your hard-earned money. You should invest for the long term, and it’s therefore not a decision that should be taken lightly.

Source Credit: City A.M.

 

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