2. Pyramid Schemes
These schemes are designed to look like actual investments but rely on new investors to pay off earlier ones. Eventually, when no new recruits join, the entire system collapses.
Avoid any scheme that focuses on recruitment or promises commissions for bringing in new members. Real investments do not require a recruitment structure.
3. Finfluencers: Understanding the Challenges of Online Information
Finfluencers are financial influencers. With the rise of finfluencers on social media, some may provide genuine information; however, some may lure you with too-good-to-be-true schemes which promote high-return at a zero-risk. Some may also be paid to promote fraudulent schemes or risky investments without proper warnings. Therefore, you need to cross-check any advice from social media finfluencers with a registered/certified financial advisor.
4. Fake Investment Apps
Scammers create apps or websites that promote enticing returns, often using fake dashboards to show your investment growing. These scammers impersonate official Mutual Fund sites to lure you in. When you attempt to withdraw your money, the site may vanish, taking your funds with it.
Hence, stick to known and regulated platforms . Always check for details such as their URL and physical address on their website. By staying cautious, you can protect your hard-earned money from falling into a scammer's hands
