Stay Safe This Festive Season & Beyond: How to Spot Investment Scams

The festive season is around the corner, and investment scams tend to surge during this time as people are often in a spending mindset, making them more susceptible to promises of quick returns.

The holidays generally bring increased expenses, and with the desire for extra money for gifts, travel, or celebrations, people may feel a heightened need to grow their finances. Scammers exploit this by presenting “opportunities” that seem too good to pass up, such as high-yield investments, cryptocurrency schemes, or stock tips.

Spotting Red Flags in Investment Opportunities

• Info You Didn't Request: EasyEquities will never send investors information related to individual accounts unless requested. Statements of an investor’s trading activity, portfolio performance, and contributions can be downloaded directly from the app under "Statements."
• Promises of High Returns with Little Risk: Be cautious of investment opportunities that guarantee high returns with minimal or no risk. Genuine investments always involve some degree of risk, and “too good to be true” promises are a red flag.
• Pressure to Act Quickly: Scammers often create a sense of urgency, claiming the offer is only available for a limited time or that you need to act fast. Legitimate investments allow time for research and decision-making.
• Lack of Transparency and Documentation: If an investment lacks detailed information or proper documentation, or if the promoter is unclear about specifics, it's likely a scam. Legitimate opportunities come with clear, detailed paperwork and can be easily researched.

Stay vigilant this festive season and beyond; remember thorough research and caution are your best defenses against scams. Protect your finances by only investing in opportunities you fully understand and trust. 

For suspected fraud on an EasyEquities account, investors can email fraud@easyequities.co.za or submit a ticket marked "fraud." Reach out if there are unknown transactions, withdrawal or password reset alerts, emails received without an account, or unauthorised banking changes. Activate 2FA for added security, and check our blog posts for more tips.

Read more about how you can safeguard your account from scams here or click below.