Research suggests that investment scams are on the rise, and there is no definitive estimate for how many cases are reported each day. One recent study found that over 60,000 complaints were filed with the Federal Trade Commission in 2018 alone, and the number is likely to be even higher today. It’s estimated that only a small percentage of victims actually report the crime, so the true number of investment scams is likely much higher. It’s a growing problem, and it’s important to be aware of the risks and know how to protect yourself.
Investment scams are common fraudulent schemes that promise high returns on investments, but end up costing people their money. These scams can take many forms, such as ponzi schemes, pyramid schemes, affinity fraud, or advance-fee fraud. Everyone is a target , but they often target vulnerable people, such as retirees or those who are struggling financially. The perpetrators of these scams may use high-pressure sales tactics or false information to convince people to invest.
These scams can have a significant impact on people’s emotional well-being. The stress, anxiety, and sense of betrayal that victims often experience can be overwhelming and take a toll on their mental health. Victims may also suffer from depression, low self-esteem, and feelings of shame. Many victims feel like they have been taken advantage of, and they may have trouble trusting others. Some people even feel ashamed that they cannot tell anyone about their experience, which can make the emotional impact even worse.
Been scammed, is not the end of the world. There are people who can help you get through this difficult time. You can contact authorities and report the scam, reach out to a financial advisor, lawyer, or therapist who can help you understand your options and make a plan for moving forward. You may feel overwhelmed and scared, but victims eventually get through this.
Moving on from such tragic can be difficult, but it’s not impossible. Taking things one day at a time and focusing on making small, positive changes in your life can ease the pain. For example, set small, achievable goals for yourself each day and find joy in the simple things. Reconnect with family and friends and find support in your community. Take care of your physical and mental health by eating well, exercising, and practicing mindfulness.
Investment scams can be devastating, both financially and emotionally. However, there are ways to recover from a scam and rebuild your life. First, accept what has happened and don’t blame yourself. Next, take steps to report the scam and try to get your money back. Consider talking to a financial advisor, lawyer, or therapist to help you through the process. W
While there are many legitimate investment opportunities out there, it’s also important to be on the lookout for investment scams. The best thing you can do is to be aware of the red flags and do your research. First, be wary of any company or individual that uses high-pressure sales tactics, such as limited time offers or promises of unrealistic returns. Be sure to check out the company or individual offering the investment with a reputable source, such as the SEC or your state securities regulator. Consult with a financial advisor who can help you determine if an investment opportunity is legitimate. Taking these steps can help you avoid falling victim to an investment scam.If you see any of the red flags we discussed, it’s best to walk away.
If you’ve already been scammed, don’t be embarrassed or ashamed. Report the scam to the proper authorities and take steps to protect yourself from further harm. The best way to avoid being scammed is to educate yourself about the risks.
In South Africa, the emergency number for reporting scams is the South African Fraud Prevention Service (SAFPS) hotline. The number is 0861 101 248. This hotline is available 24 hours a day, 7 days a week, and it’s free to call. You can also report scams online at safps.org.za. The SAFPS is a non-profit organization that works to prevent and combat fraud and scams in South Africa.
“Recovery is a process – it takes time and patience”.