Financial Fraud: how to protect yourself from fraudulent investments

Financial Fraud: how to protect yourself from fraudulent investments

Financial Fraud - Is to deprive individuals of their cash, capital or alternatively disrupts your finances via deception. Financial Fraud aimed at all age groups! Learn how to avoid Financial Fraud & Financial Pyramids, plus how to protect assets from fraud.

 

In the world of scams, not even the richest escape financial fraud. Recently, actress Juliana Paes was the victim of a financial coup and lost R$ 500 million. According to information published in a column in the newspaper O Dia, the company responsible for the fraud was F2S Intermed de Negócios.

 

The agreement made by the actress was that the company would buy cars with the mentioned value, and then, with the resale of these, she would have a return of 4% to 8% of the amount invested.

 

Despite the deal being carried out in May 2018 with the collaboration of a trusted financial advisor of Juliana, she ended up falling for the Financial Fraud. From May to July 2018, around BRL 6 million were handled in fraudulent operations.

 

In addition to Juliana Paes, Murilo Rosa and Luís Fabiano were also victims of the coup. There were R$ 460 thousand and R$ 280 thousand lost, respectively. So far, none of them has been able to recover the values.

 

Financial Fraud - The complaint was offered by the Public Prosecutor's Office of São Paulo and that the victims appear in the action that is running in Justice, even though they are not the authors of the process.

 

From this story, how can you guarantee that your investments are safe? Check out some tips on how to identify financial fraud.

 

Financial Fraud - What is a financial pyramid scam?

One of the oldest scams in the world, the financial pyramid is defined by the profit arising from the entry of new participants, never by the activities generated by the company.

 

However, pyramids are unsustainable in the long term, with very serious consequences for thousands of people, and even further away from their financial goals.

 

Cryptocurrencies are usually the most attractive assets for this type of financial fraud, due to the possibility of having high returns, and therefore, they end up becoming the bait and backdrop for many who commit financial fraud, always promising ridiculously high gains in a very short time.

 

But attention: the financial pyramid can be applied to any type of variable investment, being cryptos, trade, stocks, and real estate funds, among others. Financial Fraud - There is no way to promise a certain guaranteed return on these types of assets. The only way to have a clear return is with fixed income, based on the Selic rate, which is currently at 5.25% per year.

 

PIX: Central Bank increases security

The practice is a crime against the popular economy. According to Law 1,521, of 1951, this crime is defined as “obtaining or attempting to obtain illicit gains to the detriment of the people or an indeterminate number of people through assumption or fraudulent procedures (“chains”, “snowball”, “pichardism” ” and any other comparables).”

 

Financial Fraud: How to avoid falling into this type of scam?

There are a few ways to recognize the financial pyramid or financial Fraud before entering one.

 

In addition to the promise of easy money, other striking features are easy to identify when dealing with financial fraud. For example, the disclosure of luxury living standards and there is a lack of clarity on how remuneration works. Still, there is an intense focus on recruiting new members and little importance on selling products.

 

If these elements go unnoticed, you need to exercise other types of caution, even in investments that won't get all your money. A level of mistrust is very healthy in these cases, especially if you're doing business over the phone or via text messages and social media. Financial Fraud - Before accepting any business, give preference to companies with credibility. Avoid suspicious sites that deviate from competitors' standards.

 

Still about credibility, researching the company that is offering you the business is extremely important. Don't close the deal right away. Look for other people's online experiences, company policies, and other information that could indicate fraud.

 

Notary's registration

Many people believe that having a notarized contract is enough to protect themselves in case of falling into a financial pyramid or other types of financial fraud. While it's a safety step, it's not enough. Before investing, check with the Securities and Exchange Commission (CVM) if the fund exists and if there are no legal charges. If it is an institution, check with the Central Bank.

 

Fraud - Another method, as mentioned above, is to search online for more information. Therefore, look for journalistic articles, from well-known vehicles, about the company or the type of investment.

 

Insurance is no guarantee

As a way to attract more people, some financial pyramids have insurance. This simulates the feeling of protection, as an insurance company has a high financial capital, in case it needs to reimburse large losses. However, it's no use having insurance from a company that people have never heard of. Check if the company is insured by large companies, with credibility, and registered with the Superintendence of Private Insurance (SUSEP).

 

Fall into the financial pyramid scam or financial fraud, now what?

 

Even taking all the care, paying attention to details, and checking all kinds of information possible, there is still the possibility of being deceived into financial fraud.

 

In such a situation, after the initial despair, file a police report. The tip applies to other types of fraud or scams, such as credit card cloning, WhatsApp scams, and bank loans.

 

Then, contact your financial institution to report what happened and see what the next steps are, and how the bank can help you. In addition, it is possible to anonymously report to official bodies when you come across financial fraud schemes and financial scams, in the same way that Juliana Paes did.

 

Finally, let friends and family know. Financial Fraud - Telling about what happened and showing the signs that they passed can lead to someone else not losing money too.

To invest wisely, search for institutions regulated by the Central Bank and CVM, such as EQI Investments.