Investments are supposed to make your money work for you, but if you’re not smart about choosing the right and legit ones, you might lose everything you have worked hard for. Here’s what to do to avoid getting trapped by fraudulent investments.

Remember That There are No Guaranteed Returns

While some investment vehicles are designed to have fixed interest rates, you should be wary if someone promises unrealistic growth in a short time. Also, investments always have risks associated with them, no matter how low, so don’t believe anyone who says you can’t lose.

Know Your Broker

Before investing in anything, know the background of the person you’re dealing with, especially if the offer was unsolicited. Ask for licenses, company websites, addresses, and other pertinent info you could verify.

Ask How It Works

Do not invest in something just because you were promised it would be the next big thing. If your broker cannot explain how the product works and how it should perform against the market, and they seem avoidant of your questions, consider it a red flag.

Don’t Rush

Scammers often lure their victims with attractive returns but only if they act quickly. Legitimate investments are supposed to stay in the long run, and if your broker tells you the opportunity might no longer be available tomorrow, that smells fishy.

Sometimes, however, you might still be a victim despite taking ample measures to protect yourself. It could be that your broker violated your trust or didn’t conduct enough due diligence. Check out https://investorlawyers.org/ to work with lawyers who can help you recover your investment losses.