The most surprising classic scam in this respect is Bernard, the former chairman of the famous Nasdaq Stock Exchange on Wall Street. I don't know how many rich people, smart people and even financial institutions such as banks have been deceived by Madoff's amazing scam. To avoid falling into this high-level financial scam, we must grasp two basic principles: first, don't do it if you are unfamiliar; The second is to be vigilant, not knowing not to take money, or never investing easily.
Second, low-level financial fraud. Most of these scams are carried out without legal protection, mainly using high-interest inducement means, such as virtual pyramid schemes to raise funds to cheat money, and high-interest deposits are not returned. Therefore, in order to prevent falling into this kind of financial fraud, we must adhere to legal protection, make clear the legal role and economic background of the other party, and do not participate in private high-interest financing and lending activities.
Third, a quasi-scam. It is a quasi-scam, because it has a legal basis, but it is not a well-intentioned investment and financial planning, nor is it a useless investment and financial planning. For example, investors who invest in stocks are encouraged to invest in stock warrants with complex design and bizarre value, which is said to be high risk and high return. As we all know, high risk is not destined to correspond to high return.
Fourth, the misleading scam of financial product design or service. This will make investment managers unprofitable or incur losses, and they will feel cheated. For example, some so-called capital preservation investment and wealth management funds with no profit prospects and good profit possibilities hide the risk cost of the transaction gap; Some insurance representatives with limited level or selfish tendency failed to accurately explain the risks of insurance wealth management products to investors, such as the risk cost of "insurance failure"; There are also some investment and wealth management products launched by financial institutions. On the one hand, they state the advantages and disadvantages of their products in big characters, but on the other hand, they put the related responsibilities, risks, exemptions and so on in small characters at the end of the page, which makes the investors ignore and suffer. Therefore, in this case, investment and financial management personnel must have a complete understanding of both positive and negative aspects, understand all the words thoroughly, pay special attention to small notes, and ask investment and financial consultants to fully state the relationship between risks and benefits. Only when the statement of the investment consultant or financial representative is comprehensive, thorough and dialectical can investors fully grasp the financial products and finally decide whether to participate in the investment and financial management recommended by the financial consultant or representative.