Falling prey to financial fraud is nothing new. It has happened time and again under several circumstances, targeting your hard-earned money to fall into this trap. According to the RBI statistics of 2020-’21, INR 1.38 lakh crore got syphoned out of various Indian bank accounts. There are certain fraudulent cases in the crypto market as well. These scams can happen to anybody at any point in time. However, you can negate the possibility of falling into such traps by being more cautious. Here, we will discuss the techniques to protect yourself from financial fraud.
Lacking the time and energy to review your financial portfolio and status is one of the key reasons for falling prey to various financial frauds. Under such circumstances, many of us seek expert guidance. Such experts must possess proper licences and certifications as proof of authenticity to handle your finances. However, they too are not foolproof, and you might not experience the desired outcome, especially for your market-linked investments.
However, the underperformance of any investment plan has never been termed fraud. You must consider these factors to make the differentiation:
Despite everything, if you still experience loss, then such poor performances can happen due to other factors. However, a lack of efficiency on your financial advisor’s part can even lead him/her to court under the following circumstances:
You have to keep your eyes and ears open to detect potential financial frauds. Some important factors that may be indicators of financial fraud are:
As the proverb says, “Prevention is better than cure”. It stands true in the case of finances too. As a wise and sound investor, you must clarify the following before investing in any scheme:
Offering unrealistic return promises is one of the principal tactics of financial fraudsters. They will allure you into their trap and then doom you. Any scheme offering returns like 3% or 5% per day, for example, is supposed to be a trap. You must accept:
Consider certain factors to identify authentic investment schemes:
This is the easiest and the trickiest part. Ensure not to share your bank details, login details, OTP, passwords, CVV, PIN, etc., with anybody to maintain complete confidentiality. Also, be cautious while sharing your Aadhaar and PAN details too, as theft of identity could lead to scams and phishing. Financial frauds have aggravated considerably in recent years. However, if you maintain and implement taking these steps as discussed, you can avoid falling prey to such fraudsters.
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