Is There Science Behind Investment Scams?
Investment scammers are using real-life situations, faking websites of legitimate businesses and sharpening skills to outwit savvy investors. Scam artists are experienced at the art of persuasion and know which questions to ask to make you most susceptible to their pitch.”
Ever wonder how scammers do it? Here are some of the most common tactics:
The “Phantom Riches” Tactic— dangling the prospect of wealth, enticing you with something you want but can’t have.
The “Source Credibility” Tactic— trying to build credibility by claiming to be with a reputable firm or to have a special credential or experience.
The “Social Consensus” Tactic— leading you to believe that other savvy investors have already invested.
The “Reciprocity” Tactic— offering to do a small favor for you in return for a big favor.
The “Scarcity” Tactic— creating a false sense of urgency by claiming limited supply.
Never rush when making a purchase decision, and don’t be afraid to say no and walk away. For more tips on smart buying, donating and investing, go to www.bbb.org.