Important points to remember

Make sure you understand investment opportunities before handing over your money. Don’t rely on the promoter’s representation of the investment’s value.

Be wary of unsolicited phone calls about investments, especially those from offshore or companies you have never heard of. If the deal does not eventuate, you may find it difficult to get your money back.

Take some time – get all the information you can about the investment. Before you invest, check the promoter’s materials with a qualified financial adviser whose advice you trust.

Beware of testimonials. Companies sometimes hire references to claim the firm’s investments brought them sudden wealth.

If in doubt, don’t invest. Before you invest, ask tough questions and get information from a variety of sources. If you can’t access reliable information about the company and the investment, you should not risk your money.

And lastly, if something sounds too good to be true, then it probably is.