The world is full of dangers; at every step, there is a deception, and if you are not vigilant enough, you will fail to do what you planned and lose all that you had. This is particularly true of investment activities. This is a fairly complex and extensive branch of the business; many investment companies offer investment opportunities or credit services. Still, when choosing such an organization, you must be especially vigilant. In this article, we will highlight the top 5 unlicensed investment companies that you should avoid.
List of Top 5 Fraudulent Investment Companies
The list of unscrupulous investment companies is undoubtedly large, but below we will highlight five specific representatives that you should avoid:
- AM Global Management
- B.O. Technologies Limited
- C.T. Holding Ltd
- Dachser Global Markets
These companies are accused of making unsolicited calls and emails about investments, financial advice, credit, and loans. They do not have valid licenses that would allow them to engage in these activities, so they cannot be trusted.
How do you check the chosen investment company for integrity?
Now that you know the name of companies that operate dishonestly, you can save yourself a lot of trouble and avoid doing business with them. However, how can you be sure that other companies are trustworthy? Below we will highlight some useful tips that will help you check and ensure that the investment company is reliable.
- Check the company for licensing
Companies may claim to be regulated to place your trust. Still, it would help if you always double-checked what they say using the financial institution’s directory or FINRA BrokerCheck, which provides reliable information about legitimate companies and their licenses. If you do not find your potential investment company on this list, you should not trust it.
- Detect “red flags” in time
Knowing the main signs of fraud will be easy to recognize them. So, if you notice the following patterns of behavior behind investment companies, it is a direct indication of their deception:
- Promises of high returns with little or no risk
- You receive insider information or a hot tip
- You feel you are being pressured
- The company is not registered to sell investments
- Check for imposters
Some scam companies impersonate a well-known company with a good reputation, so you must double-check their credibility. To do this, go to the company’s page and double-check their phone numbers and email. Next, ask for the company’s address and check to see if the company is registered with the regulatory agency.
- Don’t be afraid to ask questions
You have every right to ask as many questions as possible before you can trust the company. Watch how the company representatives answer them; if they are evasive, you should be wary. You can ask these questions to clarify the whole situation:
- Ask how the profits are generated-are you getting income from new inflows of money or actual investments? What is the approximate maximum amount of your losses?
- How long do you have to stay invested – what happens if you decide to withdraw your money? What are the company’s sanctions, restrictions, and procedures
- If something goes wrong, where can you go for help?
But even if you get fairly adequate answers, you still need to check the company’s owners, directors, and board members. In addition, check how accurate the information is about the qualifications of the investment company’s employees. Also, be sure to have reviews and complaints about the company on credible forums.