FIJ
Every week, the Foundation for Investigative Journalism (FIJ) receives complaints about investment schemes that have gone sour and held millions in assets for ransom.
FIJ has found some common trends in investment offers that put investors’ money at risk.
While many investment plans offer promising returns and income, they fail to pass the test of sustainability. Other so-called investment plans are ponzi schemes and are operated by illegal outfits.
Here are some common and basic mistakes investors have made with investment choices in the past:
1. FAILING TO CONFIRM IF A COMPANY OR INDIVIDUAL IS CERTIFIED TO HANDLE INVESTMENTS
There are numerous individuals and groups claiming to operate an investment business in Nigeria. However, not every company or person is who they claim to be.
Some victims of investment scams could have escaped the clutches of bogus investment companies if they had made an inquiry into the legitimacy of these companies.
Potential investors can conduct a simple search of companies registered to do investment business in a country.
The Securities and Exchange Commission (SEC) has a portal to confirm companies registered to operate investment businesses in Nigeria.
A company’s absence on SEC’s database should be a deal breaker for any potential investor.
