At Guthrie County State Bank, we’re committed to helping our customers protect what they’ve earned, that includes their investments. This week’s Fraud Friday highlights a scheme that’s become all too common: “high-yield” investment scams.
These scams often promise investors unusually high returns with little or no risk. However, if an investment sounds too good to be true, it probably is.
Here’s what to watch for:
- Promises of guaranteed or unusually high returns – Legitimate investments will always carry some degree of risk. If someone promises big profits with no risk, that’s a big red flag.
- Pressure to act quickly – Scammers create a false sense of urgency to keep you from making rational decisions or doing research.
- Unlicensed sellers – Always check that the person offering the investment is licensed and the product is registered with regulatory authorities.
- Vague or complex explanations – If you don’t understand how the investment works, don’t invest.
What you can do:
- Take your time. Don’t be rushed into handing over your money.
- Talk to someone you trust, like a financial advisor or your local banker, before handing over money.
- Ask questions, do your research, and stay on top of the latest fraud news.
One way to stay on top of fraud is to check back with us at Guthrie County State Bank for future Fraud Friday articles. We highlight new topics each time that help keep you in the loop and provide you with the knowledge to protect yourself from scammers.
If you suspect an investment opportunity may be a scam, report it to the Iowa Department of Insurance and Financial Services to help protect others in our community.