Avoid Get Rich Quick Scams
Know how to avoid get rich quick scams and save yourself money and aggravation. It's an old saying but it's an axiom of life: There's no free lunch and if it seems too good to be true, it probably is. After repeating the old sayings, it's also true that sometimes good luck aligns with creative ideas and investors can hit the jackpot. The question is, "How do I know if it's a get rich quick scam or the real deal?" Using this checklist is a way to evaluate your odds of getting taken in a scam.
You'll need a few things to use the checklist, including;
- common sense
- the ability to put a lid on the excitement of big bucks
- research skills
- interview skills
- Confirm claims made on paperwork. Get rich quick scams usually have some sort of paperwork to "prove" how successful the program is and to look official to potential investors. Rather than skimming the paperwork, dig deep into the sources cited. Call some of the people used as recommendations. Go to a bookstore or the library and check out the books used on any paperwork. If banks are cited, give the bank a call. Cross-check telephone numbers using the Internet or a phone book to confirm correct contact numbers. A real name with a telephone number and a fake web site can fool an investor, unless a call is made to discover the problem. Ask for paperwork from the source, don't rely on anything provided only by the investment group.
- Read the fine print. Avoid get rich quick scams by reading all of the print on the contracts or paperwork. This includes the print requiring a magnifying glass. You shouldn't be the only person to read the print, have a legal eagle of your choice also take a look at the paperwork.
- Curb your enthusiasm. There really is no free lunch. Period. Ask yourself, "If this deal is so good, why is this person coming to me?" If it really is a good investment opportunity, the person will give you time to check out the basics. Cons work on a hurry, hurry, no time to wait basis. If you get the rush, it's a scam.
- Check the BBB. The Better Business Bureau is a non-profit agency that is dedicated to representing representing honest business folks and outing the rotten operators that defraud investors and offer shoddy business services. If you don't have a local BBB, check online for the national service. You'll need to find the exact business name and any related businesses related to the main company. Scammers operate from numerous companies so it may take some time to hunt down your company.
- Call the cops. The local police may know the get rich quick scammers by name. Check the address listed for the company and give the local law enforcement offices a call. Check the state attorneys general offices also. These groups keep lists of noted scammers and are happy to help you hunt down frauds. You may need to write a letter requesting information. If the state requires a written request, get on it right away.
- Check the Internet blogs. The Internet many times has an amazing nose for fraud. Scorned investors want to warn others from falling down the same hole that gobbled their finances.
- Ask the company for their financials. If the get rich quick scam is legit, it will have a business plan, bank statements and all the legal paperwork you need to evaluate. Don't settle for later or a comment that "We're working on that now." Be firm about your commitment. No paperwork, no investment. Avoid get rich scams by refusing to be a sucker.