Sound financial investments can provide us with financial security, especially if they are passive. But they can also cripple us financially if we make poor decisions, or if we are a victim of fraud. Even safe and legitimate investments can potentially cause significant losses. Even though we do not have full control over our investments and the return they may yield in the future, we can still take preventative measures to protect ourselves from financial and investment fraud.
In recent times Israel has had its fair share of financial scams, but that should change with new laws being introduced and bans on advertisements of illegitimate products. For example, just last October, the Knesset had passed a law which banned the use of binary options in Israel. Firms only had three months to cease all of their operations in this market. With the three-month window long closed, anyone involved in this industry can potentially face up to two years in jail.
Even Google has stepped in and decided to ban all ads for binary options – and cryptocurrencies. Google is now also prohibiting the advertisement of unregulated forex and CFD firms. This advertisement ban will help further prevent the binary options industry and other related financial scams to avoid any more Israelis and other people across the world from losing their money to these schemes. While the Israeli government and large corporations like Google and Facebook have taken steps to protect Israelis and investors around the world, it is still essential for individuals to be proactive and protect themselves from scams and fraud.
The first thing you should do when investing in an opportunity is to conduct your research and due diligence into any investment opportunity you are considering. You can check to see if the company is licensed or registered with the appropriate authorities. Regardless of your experience in investing, there is no substitute for careful research and monitoring. You can even hire an attorney or a professional if you do not have the time or the know-how to conduct this due diligence. If it sounds too good to be true, then it most likely is. The higher the return promised, the higher the risk involved is. Fraudsters often promise outrageous returns in a relatively short period. There is no such thing as a guaranteed return, nor a risk-free investment.
It is also very that you protect your online presence when you are investing. For example, banking details, investment account logins, emails, and personal financial information are huge targets for hackers. For example, if a hacker gains access to your email which is tied to your bank or trading account, they can potentially reset your password and have access to your funds. Therefore, it is essential that you use a secure VPN to protect yourself when accessing your financial information online. It is also imperative that you do not complete any financial tasks while on a public computer or public wi-fi network because it is very much possible for hackers to comprise these platforms. You should also consider setting up 2-factor authentication on your banking and investment accounts. This way, if a hacker steals your password, they will still require a code from your phone to access your accounts.
Of course, no matter what precautions you take, there will always be some financial risk involved with your investments. However, by taking the steps outlined in this article, you will reduce the chances of falling victim to fraud.