The rich-quick promises are a sure way to lose money. Anyone can fall victim to a scam that promised the best returns.

Citizens who just collect severance pay, individuals with some level of savings, professionals, small business owners. Anyone can be scammed and lose the amount deposited in an investment, it is assumed, high profitability. In times of crisis, investments “miracle” that promise to stimulate the ailing individual economy are more present than ever and are as dangerous as ever. In general, proposals that promise savings multiply overnight apparently come from reliable entities. But the truth is that most of the time who offer services such act without the authorization of the competent bodies and just want to take over the capital of their victims. Who and what are their methods? How to avoid falling into their networks?

Beyond the law

Entities operating in the financial markets without being enabled and offer exceptional investment under the claim of a high profitability are known in official jargon as “boiler rooms” and their effects are truly tragic for those who risk the little they have. For government authorities the case of companies operating outside the law. Not prove compliance with requirements that are considered basic to provide investment services (sufficient capital, organization and means, etc.). who respect authorized companies (companies and securities dealers, portfolio managers, EAFI, banks and savings, etc.). Nor are they subject to supervision by the supervisory bodies (CNMV and Bank of Spain) or are attached to the Investment Guarantee Fund or deposits . The latter turns out to be quite harmful to the user, because it leaves investors completely unprotected in the event of insolvency.


Forewarned is forearmed

We must act to head to break even, or even risk it. The primary protection to emerge unscathed from this particular minefield is identified as such. Should never trust any financial institution unknown until you were able to verify that you are duly authorized to provide investment services. The investor has available protection mechanisms to be used before releasing the capital. You must request information from the supervisory body, in this case the CNMV, identify certain characteristics of the operational proposal and require specific responses to the contact person.

Periodically, the National Commission of the stock market warns companies that are offering financial advisory services illegally in Spain. Absolutely always, you should check with the CNMV the reliability of the company you have been contacted prior to any disbursement. In most cases, con artists perform several collection points distributed throughout the national territory and use hook deposits, reaching even offer 25% returns really short periods.

Invest with caution

The financial scandals are the order of the day. If someone tried to seduce him with promises of this kind act with caution. Determine the suitability of the proposed operation is simple if you act judiciously. Why, if the bank where I have my savings gives me 4% interest on a fixed term deposit, you offer me 25%? Insist that provide clear answers to such questions. The goal of scammers is to confuse the citizen and make you feel ignorant to trust them without question their arguments, but no question is irrelevant when it comes to how to invest your money. Knowing in advance all relevant aspects of the proposed investment is the first obligation of the investor.

Yes, even yet finished delivering the money, it is quite likely to be lost forever. Whether the investor gets you back all or part of capital and if not, is very important to make the facts known to the CNMV and report the incident to the police or to the relevant court. The complaints enable the responsible agencies disseminate timely warnings, helping other investors are not cheated by the same “stall”.