Ways Financial Companies Deceive Investors

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Investor Deception in the Financial Sector
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Recently, television screens, the Internet, radio, and billboards have been inundated with information advertising various financial companies promising potential investors astronomical profits.

The unfortunate experience of MMM has not taught people how to recognize fraudsters. Many continue to fall into debt and take out loans at the sight of such advertisements, eager to deposit money into the accounts of these organizations. This is driven by the desire to earn millions with little to no effort. Numerous scammers have learned to exploit the human attraction to wealth for their benefit.

They promise high returns, money protection, and profits that could last a lifetime.

In most cases, after investors transfer funds, events unfold rapidly and unfavorably for the investor. At best, they may receive interest payments for a while. However, more often than not, investors simply lose all their money.

What should be done? Should one permanently abandon the idea of investing and earning passive income? In reality, the situation is not so bleak. The key is to timely identify the fraudsters. How exactly do financial companies deceive investors?

Understanding the fraudulent schemes of pseudo-corporations can be aided by a knowledgeable investor and the founder of "Oil Resource Group," Sergey Tereshkin. Information about the businessman and his professional activities can be found on the internet portal: www.sergeytereshkin.ru

Recommendations for Potential Investors

To avoid losing all invested funds, it is advisable to follow a series of recommendations:

  • When investing, it is crucial not to succumb to temptation or let greed take over. Decisions should be made based on sound judgment. Even if a substantial profit was earned, one should not immediately increase their investment portfolio. It is better to invest the initial amount plus the income obtained from it.
  • Before investing money, it is important to understand the project's workings and prospects, at least at a basic level. This will help clarify where to invest and where to avoid.
  • To gather necessary information, it is by no means essential to wade through tons of specialized literature. Simply visiting forums and websites with reviews from real people will suffice. However, it should be noted that fraudsters invest significant resources into promoting and crafting a positive reputation for themselves. Therefore, one should not believe information on the first pages blindly. To obtain real data, some digging may be required, which could take a few hours. However, the results will justify the time spent searching.
  • It is crucial to understand that financial operations in the stock market and other areas are conducted at one's own risk. If money is lost, there will be no one to recoup the losses. This is the main difference from investing in bank deposits, where an individual is protected by the deposit insurance system and can recover all invested funds.
  • Avoid investing in companies that have recently emerged in the market and have yet to establish a reputation. Even experienced investors make mistakes and incur losses. However, they have a much greater chance of compensating for the damage through profitable projects. This way, investors can preserve their funds, and perhaps even receive a modest income.

Sergey Tereshkin advises against investing all available funds. It is advisable to start with a small sum. The volume of investments can then increase. This is how capital is formed. Investors should always maintain a financial cushion that allows them to survive the period while their money is invested in a specific project. This is crucial because quickly withdrawing funds is often impossible. Early termination of a contract can result in the loss of interest and penalties. This is one of the ways to hold investors and their money captive.

Ways of Deceit

Many people have undoubtedly received emails detailing how large companies boast that only from the results of the last reporting period, shares of one of the mutual investment funds yielded returns of 200% or more. One should not be deceived by such claims. This information is nothing more than a marketing ploy. Data about one share does not guarantee the overall profitability. It's possible that other projects of the company have failed and profits cannot cover losses.

This is one of the most common methods of deceiving potential investors. High returns in this case may be due to a rise in the stock market. Meanwhile, profits exist only on paper and have no relation to actual trading operations. Even if some income was generated, it is not the result of the company's staff's competence. It is a situational profit, coincidentally gained by the fund due to market fluctuations. Thus, attracting clients with such a trick is unprofessional.

However, the end justifies the means, and funds do not shy away from any methods, even those that are less than honest. In addition to the lack of professionalism, this approach poses dangers for potential investors. Believing the figures and promises means risking one's money. That is precisely why professional investors discourage investing in funds promising enormous returns.

Such companies are primarily interested in attracting as much investment as possible. They do not care about moral considerations. Funds are ready to entice investors by any means possible without a thought on how to later return the money. A one-time profit does not guarantee the organization's sustained high returns in the future.

Any investment carries risk. In some cases, the risk is greater; in others, it is lesser. Being prepared for this in advance helps mitigate disappointment and dispel false hopes.


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