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Financial Fraud

How to Catch a Financial Fraudster Before Signing a Contract

Online scams have gotten the best of many of us, and if you’re one of the people who have fallen victim to such terrible ploys, you’re not alone. In fact, so many individuals have dealt with such scams that there are now specific ways to safeguard and protect yourself.

Get rich quick schemes, fraudulent business deals, and contracts that suck you in are only some of the ways people get taken advantage of, but they cause enough damage. In this blog, we’ll go over a few tips for how you can prevent getting sucked into these financial tricks, especially before you sign any contracts with businesses or individuals claiming to bring you financial stability and certainty.

Tip #1: Do some research on your own

Many scammers and schemers attempt to grab your attention by claiming that their deal is widespread, and the masses have all joined in. Don’t fall into the bandwagon appeal, where shady businesses and individuals claim that everyone is on board with their pitch – if they have to say it, chances are they really can’t back it up. Doing some of your own research can help prevent getting sucked into this commonly faked statement. You might want to look into recent news articles that investigate the phenomenon and look for evidence for or against the pitch.

Tip #2: Take time making decisions

All great things take time, and any scammer or financial fraudster who claims they can help you reel in funds quickly should be approached with some serious caution. Taking time to make financial decisions is key in any business deal; impulsivity can get you into trouble, and it’s always best to investigate all of your options before signing any contracts. Consider these additional tips:

  • Weigh your options
  • Ask a professional for advice
  • Take time to investigate your different choices
  • If you feel rushed, something is wrong

Tip #3: Don’t buy into hype, guarantees, or threats

Another business ploy that financial fraudsters use is talking up their business deal, promoting their options with “guarantees,” or outwardly threatening their victims by saying things like, “if you don’t get in now, your opportunity might be wasted!” If you notice any of these strategies used to get you to buy-in or sign a contract, hold off until you have done some homework on your own. As we said before, if individuals or businesses feel that they need to threaten their prospective investors, something is amiss. Trust your gut instincts and don’t fall for the tricks.

Tip #4: Check their background and credentials

Along with taking the time to implement some critical research on the individual, company, or business in question, it is important to exhaust some of your other resources. Performing a background check is one of the best and most certain ways to be sure you’re entering into a sound business deal with a company or an individual. Here are some things you might consider looking for:

  • Personal history of the individual – assets, financial endeavors, criminal or civil suits, etc.
  • History of the company – any pitfalls, bankruptcies, or other red flags
  • Other companies the business is affiliated with that might not have the cleanest track record

While these are just a few of the important factors to look into, background checks can offer much more in-depth information that can give you more insight into the reputability of the company or individual, and therefore into the soundness of the deal they’re offering you.

Financial fraudsters can be tough to figure out, but by informing yourself, being aware of your own reactions to business pitches, and taking the time to weigh your options, you can prevent yourself from entering into a shady business deal.

Financial Security

How We Can Help You

Whether you’re skeptical of a current offer, or you’ve been a victim of financial scammers before, it’s important to remember that you’re not alone. Affordable Background Checks is one of the most thorough, simple background check services available online today. We offer in-depth information about individuals and businesses at the click of a mouse or touch of a screen – it’s that easy. To learn more about what we offer, including pricing and background check information options, please look over our website or feel free to contact us directly.

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Gavin Muirhead

Gavin Muirhead has been involved in developing products for background checks and improving online experiences in the background screening industry since 2012. He is the lead author and editor of Affordable Background Checks.