Which is a red flag for investment fraud?

Common red flags for investment fraud include:

Major Red Flags

1. Guaranteed high returns with little or no risk
   – No legitimate investment can guarantee high, risk-free profits.
2. Pressure to act quickly
   – Scammers often say “limited time offer” to stop you from thinking or researching.
3. Unregistered or unlicensed sellers
   – Always check whether the advisor or company is registered with your country’s financial authority.
4. Secret or “exclusive” strategies
   – Claims that an investment is too complex or confidential to explain clearly.
5. Unusual payment methods
   – Requests for crypto, gift cards, wire transfers, or sending money to personal accounts.
6. Lack of written documentation
   – Legitimate investments always come with detailed documents, contracts, or prospectuses.
7. Too-consistent returns
   – Markets always fluctuate. If returns never vary, it can be fabricated.