RSD Trust have recently attended a conference in Hong Kong to discuss the ever-evolving financial fraud sector and the ways in which they advise their clients on how to protect themselves.
The international financial markets are inherently profitable but also carry risk when dealing with firms outside of the client’s local jurisdiction. There are a few safeguards that investors can follow according to RSD Trust, which will ensure that their financial security is adequately protected.
1. Research the investment
It is important to do your own research and due diligence on any investment, whether that be into shares, properties or otherwise. Google, Yahoo Finance, CNN, Bloomberg and a multitude of other resources are available to any individual to do their own independent research. Also, many investor forums will offer a global insight into potential growth prospects of any company that you are considering investing into. It is vital that you form your own opinion on any financial decision that you make. Your chosen advisor will provide you with sound information with their honest opinion on whether that particular opportunity will grow or shrink. Fundamentally, the decision is yours to make. Do not rely on glowing testimonials: find solid evidence of a company’s potential. Above all, research any business opportunity before you commit.
2. Never respond to unsolicited emails
You may receive an email or letter from somebody you have never spoken to asking your help to transfer a large amount of money overseas. You are then offered a share of the money if you agree to give them your bank account details to help with the transfer. They will then ask you to pay all kinds of taxes and fees before you can receive your “reward”. You will never be sent any of the money, and will lose the fees you paid.
Then there is the scam email that claims to be from a lawyer or bank representative advising that a long-lost relative of yours has died and left you a huge inheritance. Scammers can tell such genuine sounding stories that you could be tricked into providing personal documents and bank account details so that you can confirm their identity and claim your inheritance. The “inheritance” is likely to be non-existent and, as well as losing any money you might have paid in fees and taxes, you could also risk having your identity stolen.
3. Be prepared for volatility in any investment
Once again, any investment carries risk. Any reputable financial advisor will always explain the risks involved and the risk-reduction services available to you as an investor. Every service available has its own benefits and downsides and should be discussed and fully understood before you make any decision. Always consider the risk to reward factors and ask any questions to your advisor, no matter how inconsequential they may seem.