1. It seems too good to be true. This is pretty much of a giveaway, and you probably know it in your gut. Indeed, there are individuals who are able to strike gold but they must have done it through years of struggles and failures. If an opportunity is offering overnight success, you must think real hard before diving in.
2. There is a “guarantee.” Returns cannot be specified and guaranteed, unless the products offered are fixed income such as bonds or CDs (Certificates of Deposits). If you’re looking into stock market and one gives a guarantee, think about this simple rule: stock market returns cannot be guaranteed.
3. The opportunity is too unique and/or complicated. Oftentimes, scammers use fancy terms that will make one go “wow.” You may get so lost with the meaningless jargons and conclude that this person is an expert in what he does and maybe it is best to believe him. If there are things in an offer that you cannot understand, make it a point to ask and clarify—and if the person cannot explain it to you in plain English, time to pack up.
4. The “limited time offer only” trap. Many scammers will put you in pressure through such schemes. The common agenda behind limited time offers is to disallow you from having enough time to consider and really think about the pros and cons of the offer, if it makes sense at all.
5. The business is unregistered. This is also basic. If you really want to be sure that what you’re getting into is legit, you should check with the SEC or other government agency if the business you wish to be affiliated with is registered and recognized by the industry.