Identifying online investment scams

People who are interested in starting their own Internet business may be lured in by advertisements for online business opportunities. Although these advertisements may sound promising at first glance, potential investors should beware that many of them could be scams. Understanding some of the tactics that scammers use could help a person to avoid wasting their money.

Though it may be different than owning a physical store location, an Internet business requires hard work and extensive planning just like any other type of business venture. An email offer, infomercial, flyer or seminar that promises investors they can start a highly profitable online business with very little effort is probably too good to be true. Any pitch that guarantees high profits is also likely to be a scam, as a real business venture always involves some risk.

Before investing in an online business opportunity, a person should make sure to do thorough research. Because scammers know that they are selling a lie, they will try to make potential investors feel like they don’t have time to ask questions or look into the details of an offer. High-pressure tactics and failure to explain how things actually work are some identifying marks of a scam artist.

Even if prospective buyers have thoroughly researched a business opportunity and determined that it is not a scam, they may want a second opinion about whether or not to pursue it. An attorney who has experience in business and commercial law might help someone in this situation by researching the disclosure materials that have been provided and then offering advice about the potential profitability of the proposed new business venture.

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