Investment Opportunity
Online investment opportunities can be quite a risk. There are many legit companies but also many fraud's which appear to be professional. Many of these companies offer a "ground floor opportunity", and gaurantee's big profits, usually putting on the pressure to act now as the market is moving. Don't be deceived by these tricks.
So how can you stay clear of these scammers? There are a few things you can look for which may give them away. This excerpt is from www.ftc.gov:
- "THIS INVESTMENT IS IRA APPROVED": Some online investment opportunities may claim that their investment has been "approved" for your IRA. Don't believe it. The IRS does not "approve" investments for IRAs.
- "OUR WEB SITE WILL MATCH YOU WITH INVESTMENT OPPORTUNITIES": "Matchmaker" web sites offer to find investment opportunities that appeal to your unique interests. Ask questions. Get satisfactory answers. Do the operators of the web site disclose their identities and affiliations, if any, with the investments they're touting? Do they insist on their fee before they allow you to view their list of offerings? Who are you dealing with? Get detailed information about the company, be wary of any up-front fees, and keep your bank account information to yourself.
- "OFFSHORE INVESTMENTS ARE TAX-FREE AND CONFIDENTIAL": When the company behind the web site claims to be located offshore or offers an "offshore, tax-free" investment, get a second opinion from someone you trust - your attorney, financial advisor, or accountant - who is knowledgeable about the tax implications of "offshore" investments.
- "SUBMIT YOUR FINANCIAL INFORMATION ONLINE": Some web sites may ask you to submit personal financial information online to determine whether you're an "accredited investor." In addition to your name and e-mail address, you may be asked for your income level, bank account information, Social Security Number and other personal information. Sometimes, this is a ploy to develop a "lead list" of potential investors. In any case, be very careful before you submit any personal information online. Before you do, visit the site's privacy policy. It should tell you what personal information the site collects and how the information is used.
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