How To Avoid Oil And Gas Investments Fraud

By Kerri Stout

It is really tough to handle money, especially when you are investing. Things will get complicated whenever you get tricked into a fraud pitfall. It will put your investment and money into waste. If you do not want to complicate things when you are investing, then you better take advantage of the following tips for quality oil and gas investments.

First, you should remember to ask as many questions as you can to clarify the information you get out of the said investment. If you are dealing with a fraudster, then he or she might trip up along the way. It is not just enough to ask for additional information or references. You have to do your own research to get the most out of this.

Of course, researching before you invest is a given. Regardless of the product that you are investing, you have to do your research. Do not just rely on message board postings, news releases from companies, and unsolicited emails. These cannot serve as sole basis. You better look into the company's financial statements or the statements from the proper authority.

You have a salesperson who you are transacting with when it comes to an investment. It is highly required of you to get to know the said salesperson before you actually invest. This is so that you can determine whether it is worth it or not to deal with this salesperson. Even if you socially know this salesperson, you need to be careful of the possibility of fraud.

When it comes to knowing this salesperson, there are a number of things you must do. Check up on this salesperson's background. Know whether this one has a license for selling securities in the state. Any disciplinary history should also be checked. This is possible via the online database that the FINRA and SEC has opened to the public.

You should pay attention to offers too. There should be various offers that will come to you when you have plans of investing. Certainly, you have to be meticulous about it especially when those offers and pitches are unsolicited. Be sure to get a current financial information from an independent source when you go for this.

Get proper protection when you are negotiating with a salesperson online. The Internet is where the fraudsters can spread out there nets to catch victims they can trick. If you want to get away from these fraudsters or avoid them, then it is imperative for you to protect your online accounts from them.

Since you are investing, you have to have a set of things you are looking for in your investment. Basically, you have to know what it is exactly that you are looking for. This is especially applicable for your investment and fraud red flags. You have to be aware of what red flags to look into before you invest your money.

Phantom riches, guaranteed returns, and reciprocity are some of the red flags of investing. Of course, you also have to be wary of the halo effect, the bandwagon effect, and even the pressure put to you by your salesperson. If you are familiar with these red flags, then you should be able to make the most out of your investment.

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