Hi, I thought it good to do a case study on scams in this thread here.

Please refer to the attached newspaper article taken from The Sunday Times dated 31 Jan 2010.

Tell-tale signs are:-

1. Get Rich Quick concept - the vast majority of scams operate in this mode. Prey on human's psychology.

2. Promised returns - ask and analyse how the said investment generate the returns. No business in the world is 100% sure make money. There are risks. No guaranteed business.

3. Ask 'why they want to offer you something attractive or spend money on you so that you will invest with them'?

4. Scams hardly last more than 2 years. In fact, there is a method/formula to calculate when a scam will go bust!

5. Ask 'why they keep offering attractive items' so that you will add on to your investments with them.

6. Investment scams usually involve huge amount of money taken from you. It might not worth their efforts and time to scam just US$100 from you. Be extra careful when big dollar amount is required from you.

7. Monthly returns of some fixed dollar figure is a 100% sign that it is a scam. Don't even try to make an exit plan with such 'investment'. Don't play with fire whenever you come across some kind of fixed monthly returns.

Hope the above pointers and the article are useful in educating one against investment scams.

Tell-tale signs of a scam are various and mutating. So, we need to ask and analyse, using the above pointers.

So sad to see people keep falling into these scams.