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12 Sure-Fire Ways To Spot a ‘Get Rich Quick’ Scheme Before You Fall Into a Scam

Who doesn’t like the idea of ​​getting rich quick? The American dream is built on such expectations, and yet wealth building is a slow process without guarantees.

However, in this digital age, it is always difficult to identify a legitimate opportunity or fraud.

Here, experts give several warning signs that could prevent you from getting into financial fraud. 12 Sure-Fire Ways To Spot a ‘Get Rich Quick’ Scheme Before You Fall Into a Scam

If it sounds too good to be true

If it sounds too good to be true, according to Scott Alan Turner, CFP, financial planner and consumer at Rock Star Financial Planning, it probably is.

Common sense is not always common practice. The stock market has a proven 100-year history with returns averaging 10%. Any return above 12% must be questioned. Especially when it is followed by the word ‘guaranteed‘.””

Influencer’s advice

If you want to build real wealth, you need to turn to reliable and dependable sources. Turner does not recommend taking any advice from influencers from YouTube, TikTok or Instagram on how to make a fortune.

“These people are more likely to try to sell products and courses.”

Secrets involved

The word “secret” in every ad should be a warning, Turner said. “Making wealth is no secret.

Secret systems, secret insider information, secret hot tips – these are ways people can be easily separated from their hard-earned money. Not because they’re not smart. It’s because fraudsters are worse.”

Too much urgency

If you are forced to take an “urgent” opportunity, something is missing, says Martin Boonzaayer, CEO of The Trusted Home Buyer.

“Most programs are mobile because they can be illegal. So the planners make it feel it’s a one in a lifetime chance and it’ll only take a few days.”

Transparency is lost

In addition, if the business model or profit share details are unclear, according to Andrei Kurtuy, co-founder and CCO of Novorésumé, this may be a fraud.

“”Investors need to understand how a business model is created and how investors’ profits are distributed or how they get their share of the profits before they start investing.” Kurtuy added,

“To be sure, never trust someone who claims that their business plan is too difficult to understand and that you have to trust them. The investment will not pay off if you do not know what you are investing in.”

Make sure you apply for a “data-driven model,” adds Tim Connon, founder of ParamountQuote Insurance Advisors. “If they don’t deliver something like that, it’s probably a scam.”

Prepayment is required

If you have to pay money to get a job, it’s probably a scam, says Jay Zigmont, PhD, CFP and founder of the Financial Planning Company Live, Learn, Plan. “It can translate as a ‘buy-in’ or a guide, but it’s an opportunity to get your money.”

No experience or expertise is required

According to Matthew Robbs, founder of Smart Saving Advice, another feature of the scheme is that it allows everyone to participate and requires no experience or effort.

“Indeed, any real business opportunity, such as a side-gig, will require skills and a lot of hard work,” he said.

100% success rate

Be especially careful with promises that guarantee a high level of success.

“Anything that claims to be 100% successful or says that someone can make money with something is a specific scam. There is nothing in life that is 100% successful, ”says Robbs.

compelling headlines

Quick rich schemes will try to entice you quickly by catching your attention and interest with compelling statements, funny headlines and other unnecessary promises, said Stephen Curry, CEO of CocoSign.

These include working from home without special skills, becoming your own employer, getting six figures part-time and more.

“You have to be wary of new attractive investment opportunities before you fall into a fast-paced trap. It’s important to remember to know these fraudsters in advance.”

Appeal to the weak

Quick rich schemes take advantage of the weak and desperate, says Amanda Sullivan, a research analyst at CreditDonkey.

“”If you’re looking for a job and you need a lot of money with little or no experience, even the worst job offers will come in your eyes. But don’t be fooled. These programs often offer a foolish amount of money. accurate, [or] new and unheard of.

Pyramid scheme sign

The pyramid schemes will require you to sell items and hire more, said Ezra Cabrera, financial advisor and content marketing manager at SMB Compass.

“The recruits in the pyramid scheme will send you the products and you will recruit other people to sell the products. The point is that it will not be beneficial for you, but only for the people who are at the top of the chain.” They may also require you to pay large investments that are unlikely to pay off.

Unlicensed companies

Any legitimate business entity will always require some form of registration with state and federal agencies, such as the Securities and Exchange Commission (SEC), and local government agencies

“Making a profit from selling products without first registering the company is illegal. Always make sure the company is licensed before investing money.”

“If it’s not easy to find the information you need, it may indicate that they are trying to deceive you,” he added.

What do you think?

Written by nyggx

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