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The dubiousness of investment projects and fraud can be determined by various criteria. The most common case of investments, in which there is no question of promised income payments to investors, is called SKAM projects. Most often, such a situation manifests itself when working with forex trading, crypto assets, binary options, investing in financial instruments, asset management on capital markets.
10 characteristic signs related to the effectiveness of the investment project or financial operations will help you recognize a dubious investment project. If there are at least a few of these signs, you can already think about the caution of investing. In order to be a confident investor, protected from such fraud, seek help from the legal company "EPravo". All the company's services can be seen on the website https://www.epravo.ua/ru/, ordered the necessary package.
So, let's consider the main aspects by which it is possible to detect potential fraud.
A large percentage of guaranteed profitability
One of the main signs that the proposal may be a SKAM project is a claim to receive a super profit, which is much higher than the average interest rate of banks on deposits. In such projects, the scheme of money circulation and the logic of their earnings are often very vaguely described, however, profitability indicators of 100 percent or more are offered.
Absence of appropriate permits and licenses
It is important to understand that work with financial services, asset management and other services on the capital markets can only be carried out by projects with a license to authorize activity. Often, the fictitious project does not have any official permits and licenses, and the investor is presented with fake licenses of foreign companies with dubious data.
Aggressive marketing
Most fictitious projects are often supported by an aggressive advertising campaign based on the Internet and social networks. Such advertising should be bright and attractive, memorable and promising, but take into account that these are only emotional motives, while it is necessary to invest based on rational arguments and accurate analysis. In this case, you, as a potential investor, should be vigilant and should not place too much trust in the project just because it has many positive reviews, a high rating and is recommended by public figures.
Absence of a physical office
Pay attention to whether the company offering cooperation has its own real estate in the form of an office in the city or country. If negotiations and transactions are carried out online without checking documents, electronic signatures and personal presence, then this is a clarion call to carefully check the reliability of this company. Moreover, in such cases, a distinguishing feature may be the absence of official employees who would be responsible for managing investors' funds, the legal department, accounting, etc.
Lack of registration in the country of investment attraction
An indicator of dubiousness in this case may be the fact that contact legal entities may be residents of countries where preferential customs and registration conditions are provided.
There is no investor accreditation
The financial condition of a potential investor in this case is not a subject of interest: representatives of a dubious project will not be concerned about the investor's credit history, financial opportunities, resources — they will offer cooperation to even the poorest clients, offering loans on catastrophically unfavorable terms.
Suspicious or unverified biographies of managers
If you want to understand whether the project is questionable, pay attention to whether you have access to information about the actual leaders of the project who are responsible for the legal, financial, accounting side of the matter, whether the names of the positions of the leaders are clearly expressed, whether their confirmed professional history is available. Find out if information is available on the past activities of the project or individual ego managers. If such information is hidden, then it is possible to draw significant conclusions.
Absence of signed documents
Within the framework of Ukrainian legislation, any financial contract must be signed by two parties in several copies, secured by a conventional or electronic signature. It is worth paying attention to whether there is a signature of the project manager in the contract, or whether the contract is offered for signing in principle.
A persistent offer will attract friends
A popular practice in the case of SCAM projects is an assertive offer to investors to attract relatives, friends and acquaintances to invest. In most such situations, representatives of the project lure your environment with a well-developed system of bonuses and promotions, which should be a clear sign of concern.
Concealment of ownership
It is important to understand that when investing, documents confirming ownership of assets or their specific part, regular reports on operations, confirming project activity must appear. There will be no such reporting and official documents in SCAM projects.
The legal company "EPravo" warns investors and asks them to think about whether it is worth investing in the project if there are at least some of these signs of fictitiousness. We recommend conducting additional analysis and thorough checks, correcting your decisions to make sure that the project is reliable and worthy. Let the current hour bring you profit, not losses and problems!
