Monday, January 30, 2023

How to avoid falling for a scam or financial fraud when you invest, according to the CNMV

Starting an investment is a complicated task. It is possible that you do not know how to do it or which products to trust your money.

It’s also all too easy to make rookie mistakes. The most common are investing in unknown products, not diversifying your portfolio, being scared of market cycles or trading stocks constantly.

The best thing you can do is educate yourself before investing. Reading some books or consulting your doubts with experts is a good first step so as not to ruin yourself in the end.

In addition to typical novice mistakes, If you are just starting to invest, you should be aware of potential scams and frauds.

Beware: It’s easy to fall for these traps when you’re inexperienced. Falling victim to a scam of this caliber could mean losing all your investment.

8 finance books that can help you get rich in 2023: recommended by investors, ‘super savers’ and experts who’ve read them cover to cover

The National Securities Market Commission (CNMV) is aware of this, so it has put together a guide that you should consult if you are investing your money in certain financial products.

In this document it is possible to read several tips to avoid getting caught in scams and frauds. are below CNMV Recommendations to help you spot fraud in the investment world.

CNMV tips to avoid scams and fraud when you invest

CNMV is one of the most trusted organizations when it comes to detecting financial fraud and deception. That’s why it is important that you keep their advice in mind.

Here are CNMV’s recommendations to avoid scams when you invest:

  • Never give money to an intermediary without verifying that it appears in the records of the CNMV, the Bank of Spain or the General Directorate of Insurance and Pension Funds as an entity that you authorize to provide investment services Want to
  • Always be wary of any investment offer you haven’t requested, whether by phone, email, message on a social network, or any other channel.
  • Don’t rely on investment products that assure high returns without risk.
  • Ignore financing or investment proposals on very favorable terms from entities located in distant countries.
  • Never share your access code with third parties and always be wary of emails, text messages or phone calls requesting this data.
  • Always be wary of people or companies that try to impersonate CNMV, use its name or logo to make recommendations or sell investment products.
  • Never make investment decisions based on recommendations seen on social networks and verify the source of the information.

Following these tips will make it much more difficult for you to fall prey to the typical scams that proliferate on the Internet.

In any case, you should be vigilant at all times so as not to trust yourself and always invest safely.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
Latest news
Related news