How to Spot and Avoid an Investment Scam – 2024 Guide


Millions of people become victims of financing frauds, and that does not happen to just people who don’t pay attention. It can happen even to the people who know better, who think before they act, and those who pay attention to the smallest detail. The reason for this is that con artists are perfect in what they do, and the easiest way to not fall for their tricks is to educate yourself. In this 2024 guide, we are going to tell you how to spot and avoid an investment scam.

Pay attention to how and by whom you were contacted

The first thing that you need to pay attention to is how you get contacted by investment companies. When it comes to con artists, they usually rely on their charisma, wit, and looks to get people to invest in them. You are going to get contacted by a random stranger that you have never heard of before, and you will be presented with an amazing story. Everything will sound like a deal that should not be missed, and in these cases, you should run away as fast as you can. Legit companies will never approach a random person that they chose for no specific reason and ask for funding.

What techniques did they use?


The techniques that they use to get you to invest in the company are going to give you a lot of information if the place is real and legit or if you can potentially become a victim of fraud. The easiest way to notice if someone is trying to scam you is if they tell you that this is an offer that is not available for anyone else, that they are doing you a favor by offering you this opportunity, and if they ask you to keep the whole thing a secret because they cannot give the same conditions to other people.

More often than not, if you hear that this is a limited offer, that you need to act right away or the whole deal will fail, and that if you miss out on it you are never going to have the same option again, you are being scammed.

Make sure to always do a lot of prior research

Doing a lot of prior research will make the difference between you being tricked and collaborating with a legitimate company. No matter if you choose to trust someone who recommended an investment place, or you got randomly contacted by them, you have to vet the company. You should find as much information about them as possible and double-check all the data.

To be on the safe side, you can also think about consulting with a legal firm that will help you understand the benefits and the potential risks, and as you can see on, the right firm will represent only the investors, and not companies and places that could potentially harm you.

Aways ask for things in writing

During every investment process, we are going to sit down with the expert or the agent, and they are going to explain everything face to face. They will walk you through the process, they will tell you what they provide, how you can benefit from that, and what is expected from you. Note that these appointments may last for hours, and you are not going to remember everything that was offered or every part of the deal.


If you collaborate with e legit company, they will not have any issues providing everything in writing, and they will even give you a copy of the things you talked about before you ask. However, scam places are going to try and steer away from you getting all the information and being able to reread it at home. Always ask for paper documents that you can examine at home.

Do everything within the law

One of the biggest mistakes that people make is trying to lie or give misinformation about this or that. We believe that we can trick the system if we counsel information or if we are not completely truthful, especially when it comes to investments.

The problem with this is that con artists are going to know when you are being untruthful, and they will use that against you. If you provide false information, you won’t be able to press charges or go to the authorities after you get tricked. You will just have to accept your faith that you became a victim of fraud, and this is what most con artists rely on.

Don’t invest if you feel pressured

More often than not, people, who are trying to con you are going to use a lot of manipulation techniques. The problem with this is that they are professionals in that, and they understand human psychology. With modern terms, they are going to gaslight you into feeling like you are not appreciating the things they are offering you, and they will make you feel guilty.

If you start feeling like you are being pressured or manipulated if you start feeling that you are missing out on a favor that someone is doing for you, and if you feel like you have the obligation to do all that that you discussed about, it is more likely that you are being tricked.

Is it too good to be true?

Finally, don’t forget about this saying. More often than not when we are introduced to something that sounds like the perfect opportunity with no risks whatsoever, chances are, it is not real, and you are going to get scammed.


Real things, especially when it comes to investment don’t sound perfect. There are going to be risks, there are going to be flaws, and there are always going to be things that are missing. This is completely normal, and you should not look for perfection if you want to avoid fraud.

Pay attention to these things and trust your instinct. If you feel hesitant, or if you notice any red flags, just walk away. Never sign any documents before you make the deal, and never agree to things before you closely examine them. If possible, consult with an attorney or a financial advisor beforehand, and have a backup plan.

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