Scams and get-rich-quick schemes – Tips and warning signals

As part of the FSCA’s Consumer Education Departments’ mandate to provide guidance to consumers in order to make better financial choices and to live a financially successful life, regular articles are published on their website www.fscaconsumered.co.za.

In one of their recent articles, they provide tips and valuable input to better understand scams and get-rich-quick schemes. These and similar articles can be valuable for your clients as well as yourself.

Some tips for avoiding get rich quick schemes:

• Be careful of any investment opportunity that makes exaggerated earnings claims;
• Consult an authorised financial services provider before investing;
• Be wary of opportunities to invest your money in financial services providers that require you to bring in more investors to increase your profit.

Warning signs of “telemarketing fraud” – what a caller may tell you over the telephone/cell phone:

• You’ve won a free gift, vacation, or prize. But you have to pay for postage and handling or send other charges.
• You must act now or the offer won’t be good.
• You must send money, give a credit card or bank account number, or have a check picked up by the courier. You may hear this before you have had a chance to consider the offer carefully.
• You can’t afford to miss this high-profit, no risk offer.

Click here to read the FSCA’s Consumer Education article.