With scams attacking overseas Filipino workers (OFW) left and right – the recent $1 million lottery scam in Dubai, fake du telecom discounts and the alleged fish farm investment scam in the Philippines – Filipinos who toil hard overseas must equip themselves with the right knowledge about where to safely invest their money.
As a fellow OFW based in Thailand, financial author Jun Amparo shared some tips on how to prevent oneself from falling into the trap of investment scams, in his article published by GMA News Online.
“Understand the business model”
A business model is a plan or strategy explaining how a certain business works, earns and generates products or services. “If the company has a vague investment methodology and fails to explain how you will possibly generate returns, chances are it is a scam,” Amparo says.
Don’t trust “instant millionaire” tactics
Amparo says legitimate earning of money usually takes time and that is especially true with investing. “When you have been promised exorbitant returns and you think the offer is too good to be true, it probably is,” he says.
Check if the company and its leaders have “a good reputation”
Research is crucial. Look for the leaders’ track records to see if they’ve performed any kind of deception in the past. “Check out everything — no matter how trustworthy the person seems who brings the investment opportunity to your attention,” Amparo says.
Know where the money goes
Does the business earn by selling products or services or does it earn solely through recruitment schemes? The problem with the latter is that “when the company has reached a point when it can no longer get new recruits or referrals, it will eventually collapse,” Amparo shares.
Make sure the business is government-approved
See if the business has a permit or license to operate; otherwise, it may be illegal. Also, watch for updates from the Philippine embassy regarding scams.
Source: GMA News Online
Photo credit: Next Generation Trust Company
