As part of the FSCA’s Consumer Education Departments’ mandate to provide guidance to consumers in order to make better financial choices and to live a financially successful life, regular articles are published on their website www.fscaconsumered.co.za.
In one of their recent articles, they provide tips and valuable input to better understand scams and get-rich-quick schemes. These and similar articles can be valuable for your clients as well as yourself.
Some tips for avoiding get rich quick schemes:
- Be careful of any investment opportunity that makes exaggerated earnings claims;
- Consult an authorised financial services provider before investing;
- Be wary of opportunities to invest your money in financial services providers that require you to bring in more investors to increase your profit.
Warning signs of “telemarketing fraud” – what a caller may tell you over the telephone/cell phone:
- You’ve won a free gift, vacation, or prize. But you have to pay for postage and handling or send other charges.
- You must act now or the offer won’t be good.
- You must send money, give a credit card or bank account number, or have a check picked up by the courier. You may hear this before you have had a chance to consider the offer carefully.
- You can’t afford to miss this high-profit, no risk offer.
Click here to read the FSCA’s Consumer Education article.