How to Avoid Investment Frauds

May 16, 2019 5:08 am

Investment frauds take a number of forms these days and those who are considering investing in various types of projects should verify with attention any given aspect of the parties who are proposing the investment, the registration data of the company with which the investment project is done and numerous other aspects.

One of the first things investors can do is to avoid making a rapid investment, under pressure or under the assumption that the respective project will have a large return on investment in a short period of time. Investment fraud is a common issue, especially nowadays, when the internet can be used as a means to promote misleading projects.

More importantly, provided that a person decided to invest in a given project, it is compulsory to have a written document regarding the obligations and the rights of each party, as well as the declaration of all the benefits that are promised to the investor. If the other party refuses to provide a written document or avoids to do so, it is recommended not to participate. Another way to avoid an investment fraud is to request advice from parties that are not related to the project, who can provide an impartial opinion. If it happens to be a victim of such a fraud, it is highly advisable to seek for legal counseling from investment fraud solicitors. Since they have a wide experience in this area, they can easily explain what to do next and they can offer legal assistance if you want to go in court.

Threats related to investments in the financial sector

If possible, a good way to avoid any issues regarding a possible investment project is by knowing the person who requests the investor to participate in a project with a large sum of money. Various types of investment scams are concluded across the world, including in Dubai, which is now one of the most developed economic region in the Middle East. However, those who want to open a business in Dubai should know that the country’s main financial regulator, the Dubai Financial Services Authority, publishes on a constant basis any threats that were discovered related to investments in the financial sector.

Dubai stands out as a luxury business destination, including for the car rental sector, and due to the large infrastructure projects that were carried out in the last few years, more and more persons are attracted here and investment scammers can easily try to take advantage of the growing investment market available in Dubai, by performing various types of common investment frauds – Ponzi schemes, fake bank e-mails, lottery scams and numerous others. Thus, regardless of the domain in which the investment is carried out, due diligence and assistance from professionals in the field can be of great help in avoiding investment frauds.    

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