Increasing financial pressure and economic hardship have left many wondering how they are going to make ends meet.
According to Fiona Teeling, regional GM at Momentum, representing in Bedfordview and Edenvale, this puts most people at great risk of falling prey to financial predators.
“Scammers feed on current and pressing needs during times of economic hardship, claiming high returns, offering guarantees when there are higher levels of uncertainty and volatility, or promising too-good-to-be-true tax-efficient investments to attract investors,” she said.
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Using social engineering tactics, scammers draw would-be investors into schemes by appealing to their sense of trust or hope.
“The most common investment scams are Ponzi or pyramid schemes. Fraudsters infiltrate a community using a trusted financial adviser – who themselves have been lured in by the exuberant commission structures – to win over potential investors,” concluded Teeling.
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