Q: I recently received a call from an unfamiliar stock brokerage. The guy was offering some unbelievable interest rates I would earn if I were to investment some money there. He wasn’t representing one of the nationally known brokerage firms I’d ever heard of. I told him I’d have to think about it.
Then he said, “Why waste time? Invest your money now so you can start earning immediately!” I was still a little leery and politely declined again, stating I’d call him back in a day or two.
He then said, “You have to act now. The deal won’t be available after today. You’ve got to do it right now.” I eventually had to hang up on the guy because he just wouldn’t quit.
Do you think I missed a golden opportunity to earn big money? Did I make the wrong decision?
A: You did the right thing by declining to give the caller any cash.
I suspect you didn’t miss any “golden opportunity to earn big money.”
Although we don’t know for sure if it was a scam, all the signs are there. You didn’t know the person who called. He made a “cold call,” probably out of the phone book or off of some phone list he obtained.
The caller used high pressure tactics to try to coax you to invest your money. And he promised interest rates that were too good to be true. Then, when you declined more than once, he made one more last ditch effort to pressure you to invest by telling you the deal was now or never.
To avoid financial scams, it’s important to know the person who’s offering you an investment opportunity. Check out his credentials.
It’s wise to go with a well-known investment firm. These firms usually hire educated and experienced financial professionals.
Avoid investing any money with anyone who calls your home or knocks on your door without an invitation from you.
Plus, if someone’s pressuring you to put your money into an investment, that’s another clue it could be a scam. And if the deal sounds too good to be true, it probably is.
Finally, although there are some legitimate investments that are time-limited, if that’s the case in conjunction with these others signs, it’s best to decline the offer. It’s wise to be cautious when considering investments in today’s financial environment to avoid scams.