A lot of Australians have lost their hard-earned money over to con artists, either strangers or worse, members of their families. Money is always an interesting topic and surely everyone would be interested to have more of it. 

But how can we be truly sure about the legitimacy of an investment opportunity and how to know when we are just getting conned? 

Investing your money to earn more is always a good prospect, especially when you have money set aside for your savings. Instead of just letting it lay around, using it for investment to get returns can help you maximize its value and provide you with additional income on the side.

However, many are discouraged or are apprehensive about it for fear of losing their hard-earned money to scammers or fraudsters who take advantage of people.

Statistics have shown that one in 18 Australians falls prey to scams or financial fraud each year. This does not include senior citizens who get abused financially by family or friends, of which an estimated 5.4 % of adults belonging to the senior age bracket have been found to have experienced getting scammed according to a recent study.

Several factors were identified that formed patterns of fraud for most Australians, the most popular of which are get-rich-quick investment schemes, investment opportunities promising high dividends and returns and identity theft. 

Most of these scams were orchestrated by those who maintain a position of authority and trust or by con artists with highly persuasive capabilities.

But one can surely avoid falling victim to these scams and help protect your hard-earned savings from going down the drain.

Always be on your guard

Most of the tactics by scammers and fraudsters are focused on money, which is always a strong topic that could catch attention and make people listen. 

Money does not grow on trees and everyone knows that. But scammers will play on logic to make people believe that their “investment plot” is realizable and achievable.  If you find yourself interested in listening to their pitches, always take their ideas with a grain of salt and never give in to invitations.

If you have every chance to walk away, do so immediately, lest you find yourself captivated by their fancy logic- con artists are very good at it. 

Always seek expert advice when planning to invest

Awareness is critical and you must know how to distinguish valid investment portfolios from scams. If you want to be guided, you can seek advice from reputable financial advisers or take advantage of consultations offered through employee financial wellness programs. 

Most, if not all, employer financial wellness programs are designed with an educational component to help employees find options or training on how to effectively and efficiently manage their finances.

Exercise due diligence at all times

Whether an offer is from a stranger or someone you know, always err on the side of caution. Make every effort to exercise due diligence by doing your research on the investment offer. It is better today than we have the internet because it makes background checks and researches so easy.

Has anyone heard about this investment scheme? Is it legal? Is it even scientifically possible? These are some of the many questions that you can ask to dig into your research before you make any decision to accept it.

Money is always and will be a very hot commodity. People want to have it, while others want to get more of it- some legally and others through unscrupulous deals and activities.

Don’t lose your money over to scams and frauds. If you hear about an offer or opportunities to make quick money, make sure to take time to think it over instead of jumping in right away and living to regret it later.