It’s easy to forget this if someone is dangling the opportunity to make a lot of money in front of you, but If something sounds too good to be true, it probably is.
If someone approaches you about a supposedly amazing investment opportunity, alarm bells should start ringing. Legitimate product providers are highly unlikely to cold call you.
The same goes with pressure to rush into an investment. Don’t make quick decisions – a legitimate investment opportunity shouldn’t disappear just because you need a week or so to investigate or seek advice.
Plenty of smart people do fall for fraudsters, who run increasingly sophisticated scams. A few years ago, you might have easily seen through a badly written email, these days it’s not unusual for fraudsters to produce a slick website in an effort to look genuine.
The Financial Markets Authority’s website list scams that have been reported to it (note: this isn’t a comprehensive list, just because you don’t see the person or company you’re talking to on there, doesn’t mean they’re legitimate).