Advice from Cyprus Police to investors
Investment Fraud: Advice to Investors
In recent years, in Cyprus and abroad, there have been a number of persons, physical or legal, who offer various investment plans which finally prove to be bogus. These plans usually offer extremely high capital returns, which cannot be feasible.
Fraudsters usually
- Try to sell complicated monetary products which cannot be easily understood by consumers. Do not allow persons unknown to you to handle your money.
- Try to impress people by dressing elegantly and appearing to be successful businessmen and businesswomen.
- Make you feel uncomfortable. They take advantage of your feelings making you feel greedy, insecure, unhappy, and discontent with your self and your knowledge and abilities to handle money matters.
- Don’t forget that investments are liable to risks. If they offer an investment plan and promise you that there are no risks, you should ask yourself if this is in fact true.
Remember that once fraudsters achieve their aims, they disappear together with your money.
How to Protect Yourself
The only way to protect your self from becoming a victim of fraud is to be extremely careful. When you don’t know something, seek advice from experts. Examine carefully the investment plans offered to you and find out about the specific person(s) you are dealing with. Don’t forget: “The best protection against fraud is being knowledgeable and cautious.”
Remember that the smart investor:
- Knows or finds out the names of the people s/he is dealing with or who they represent
- Does business only with persons and companies s/he knows and trusts
- keeps record of conversations, meetings, noting important points mentioned as well as the names, dates and times they took place
- Seeks and finds information on the persons and companies with which s/he is about to deal with
- Verifies the information s/he gathers
- Makes sure that s/he fully understands the terms and conditions of the investment plan
- Asks for a detailed explanation on anything that s/he does not understand
- Makes certain that the company is legal by referring to the relevant inspection authorities – the Central Bank of Cyprus, the Stock Market and the Inspector of Insurance Companies
- Does not give away any personal information or any information regarding his finance or other personal matters before s/he certifies that the company is legal
- Does not make rush decision
- Never hesitates to ask questions. The more questions he/she asks, the better
- Asks for information on a regular basis, keeps up-to-date on the progress of his/her investments and always follows his/her investment goals
- Reports to the relevant Inspection Authorities any attempt(s) of fraud against him/her.
If something appears too good to be true, then there is every possibility that it isn’t.
For further information for investors you can refer to http://www.cysec.gov.cy
https://www.police.gov.cy/police/police.nsf/All/4B7A1882CFBE9EABC22584000041D65D?OpenDocument