Johannesburg – The recent FinTok craze on social media platform TikTok has opened the door for scammers and fraudsters to take advantage of unsuspecting users who source financial advice online.
As a young investor, the biggest advantage you have is time. By starting legitimate investments at an early age, you can benefit from the power of compounding and time in the market, building real, lasting wealth. Here are six tips to scam-proof your investment approach and advise on what to look out for when considering a new investment.
1. An investment that requires you to recruit new investors in order to realise the return on your investment is a pyramid scheme. Be wary of tiered investments that classify investors or have multiple levels, such as bronze, silver, gold, platinum and diamond.
2. If you don’t understand how an investment product generates its returns and there are no clear underlying assets you should be cautious.
3. Fraudsters want to create…