INVESTMENTS : HOW TO AVOID INVESTMENT SCAMS IN NIGERIA (PART ONE)


Investment can be described as the allocation of capital upon an asset, mechanism or item with the goal of generating income and appreciation on such asset, mechanism or item in the nearest future.

Some of the very popular assets people invest in nowadays include but not limited to ; Cryptocurrency , Bonds, Stocks, Real Estate Property, Treasury Bills, Forex, Land ,Precious metals and Non Fungible tokens .

Investments remain one of the key ways of building wealth by financially inclined persons across the world . Anyone that is interested in generating sufficient income for the present and future will understand the importance of investments and why it is necessary to educate themselves on how to avoid investment scams .

“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” — Warren Buffett, United States Billionaire and avid investor.

The Year 2021 is here and everyone is striving to achieve financial independence . A lot fraudulent individuals are also trying hard to scam hard working Nigerians of their hard earned money . In order not to fall victim , please avoid any of these schemes , investment platforms or businesses you see below :

1) Fixed Game Gambling – This is extremely dangerous . There is nothing fixed in gambling . That is why it’s called gambling . Platforms, persons or companies that offer fixed sport games are totally fraudulent and should be totally avoided .

2) More than 10 percent R0I – ROI means return on investments . Business platforms,persons or entities that promises more than 10 percent return on your investment within a month if you invest with them and you wouldn’t have to do any other task asides dropping capital , please dust your shoes or sandals and do what ? RUN !!.

There is no investment platform in Nigeria that can give you more than 10 percent on your investments for doing nothing. The only way there can be more than ten percent return on investments is when the interest on your capital is compounded over a period of not less than 6 months.

As such, desist from forex companies or platforms promising more than 10 percent ROI every month .

3) Refer before Earning -Any business that states you must bring two or three people before you start earning should be avoided totally . If the model is sustainable, you should start earning immediately . If you have to refer two to three people before you get money , then it’s bad business . An investment platform that thrives on referral is basically paying investors from the funds of the new referrals that joined and such platform is making no actual returns .MMM, Ultimate Cycler , NNN etc comes to mind .

4) Verification – Does the platform have a verifiable website and are they duly registered with CAC ( Corporate Affairs Commission ) and SEC (Securities and Exchange Commmision ) . Make sure you check out the platform on the CAC website and also on SEC website . If there is no record of them , RUN !!!! You should also endeavor to use sites like Nairaland and Twitter to search the platforms and listen to what people are saying about them .

5) Insurance – Are your investments insured ? . Do due diligence to ensure that the platform has a proper insurance policy with a reputable insurance firm . Better still, there is a trustee arrangement with a reputable trustee.

6) Source of Revenue – Where will the platform be getting the money they are using to pay you your return on investments ? How risky is this source ? . Can a government policy end all their revenue sources if implemented ? . Is the revenue source legal and Appropriate ? . How sustainable is it ? What is their Yearly Records ?. These are salient questions an investor should ask .

7) Risk Level – Proper investment platforms tell you of the risk involved . Any platform that doesn’t tell you about the risk involved as regards investment is a big scam . All investments comes with risks. Good and reliable investment platforms outline the risks involved and advice you on how to spread your investments with minimal risks .

8 ) Limited Offer – Most scam investments offer limited offers claiming it is only available for a while and anyone that doesn’t join them now is losing out . A proper investment or business will never tell you to quickly join or you can’t become a millionaire if you don’t join . Desperation is one of the things that should be avoided at all cost . If you noticed anyone is too desperate in convincing you to join a platform , it might be better you don’t join .

THE LOGIC OF PONZI SCHEMES

Some investors may say “But people are being paid ” . In fact they have a office . ? Yes . This is the logic of most Ponzi schemes and investment scams . Baiting people with the fact that a few are paid for the first one to 6ix months after which they start duping people . In the next article and the forthcoming book ” A -Z of Investment Scams in Nigeria” , we will properly outline all the tactics that are employed by investment scams in Nigeria based on professional advice from the regulatory bodies and former helmsmen of these scam schemes.

CONCLUSION

One of the things I tell people is that nobody can deceive you if you make your own research and findings . Let nobody sweet talk you . Find out and have a mind of your own . Nobody should force you by fire by force to make money . It is only when you understand the value and the work required that you should continue .



Written by Iamsynord
SOURCE : https://www.easymarket.com.ng

the Truth is any profit of more than 40% a year is unsustainable. its a matter of time , they will crash and change name to a different company and come back defrauding more people.(some hide under technology terms, some use bitcoin as bait) they are too tempting to resist. a lot will still fall victim after reading this.

Don’t be Greedy . Read and learn from others please .

Cc lalasticlala, dominique

Nigerians never learn, Mr Iamsynord.

Your effort at writing this piece is much appreciated but Nigerians never learn. Especially my elder brother.

Cc lalasticlala