The promises that give a scam away

Summary

Most scams promise one of three things: guaranteed returns, returns far above anything normal, or a deadline that leaves no time to think. Real markets carry risk and nobody can guarantee results. Pressure to act right now, secret opportunities and messages from strangers offering help are all warning signs. When something sounds too good to be true, slow down.

Key points

• Guaranteed or very high returns are the most common bait.
• Urgency is used to stop you from checking.
• Unasked-for offers of help from strangers are a red flag.

Check yourself

Which of these is a typical warning sign?

Practice