How to detect investment scams in Nigeria

Being knowledgeable about investments is important, but it is also crucial that you know how to detect investment scams. Falling victim for such scams can be detrimental to your financial health, so you want to make sure that you put your money only in authentic investments.

Here are some tips on how to detect investment scams:

1. Pressure to invest: You should be wary of individuals who put pressure on you to put your funds in their proposed investment. It is wise to always take your time and investigate all investment opportunities proposed to you before making any decision.
2. Investment opportunities that are ‘too good to be true’: Scam artists sell people dreams. Most people would want a low-risk investment with guaranteed high returns if it were possible, but sadly that’s not how investments work. Once it starts sounding too good to be true then it probably is. Always be at alert so you don’t fall victim to such scams.
3. Limited time offer Investment:  You should be wary of investments that leads with pressure tactics such as “limited time only”, “special discount for first 20 investors”, and “invest now, get your capital & interest in 1 month”, “bring 2 other investors & double your returns”. The purpose of these tactics is to rush you to commit your funds without thinking. It is safer to walk away with your money than to commit to impulse investment.
4. Fictitious track records: Investment scams often spring up fictitious records to gain your trust. They may claim huge returns from their previous investments, many years of experience, won multiple awards or provide testimonials from satisfied customers; all in a bid to shore up their credibility. Until you do your homework, be careful with such claims and take it at face value.
5. Regulation claim: Some investment scams will even claim they are regulated by relevant authorities such as Securities & Exchange commission. Confirm such claims from the SEC directory website. This is important because you will have no safeguards if you deal with an unregulated company.

Before putting your funds in any investment portfolio, keep these 2 steps in mind:

1. Research: Ask as many questions as possible. Also, visit the websites and social media pages of the prospective company you want to invest your funds. Read reviews about the company to know their credibility and understand the experience of other investors.
2. Confirm: Before investing, confirm that the credentials of the company and its representatives using available directories, regulated websites etc.

Remember that if an investment sounds too good to be true, it probably is. For legit investments, you can choose money market fund or equity income fund from reputable companies.