Providers of investment or education software may promise to make you an investment expert in no time at all – with little or no training. They’re usually promoted as legitimate financial wealth products or services.
Marketing material looks professional, referring to sophisticated analytical tools and cutting-edge technology that can predict how a trade or bet will perform. You’ll almost always be promised very high returns with very little risk.
The reality is:
We’ve received a number of complaints from investors about the following high-risk products. We recommend you be wary of them.
Seminars are usually promoted as an ‘exclusive’ event with motivational speakers who will share their secrets to financial success. You’ll typically be promised high returns with little or no risk – turning you into a millionaire in a few years.
The reality is:
Seminars are often used as a way of encouraging investors to buy or invest in property. Speakers at these seminars may claim to be investment experts but this isn’t always the case.
As a property investor you are exposed to risks for a longer time so it’s important to understand the risks before you invest. Never sign up to an investment property on the spot.
Ask the provider what type of financial service provider licence they hold. If they don’t have one, don’t deal with them. If they say they’re licensed, ask them what type of licence they hold and check our lists of licensed providers to make sure.
Take care when providing copies of your credit card, driver’s licence or other personal data online – particularly if the business is based overseas and not licensed in New Zealand. This puts you at risk of identity theft.
Be wary of someone you don’t know contacting you out of the blue about an investment opportunity. There’s a high chance it will be a scam.
Don’t feel pressured to sign up to an investment on the spot. Take time to consider your options and speak to a financial adviser before you commit if you’re unsure.
Be aware of providers offering ‘training’ and ‘tools’ that they say will help you make easy money. While software packages and training courses can teach you how to make trades or bets, no person or package can ever accurately predict whether a trade or bet will be successful.
Do your research, particularly if you decide to invest in an overseas business not licensed in New Zealand. It’s often impossible for you to recover your money if an overseas investment turns out to be a scam. See steps to protect yourself to learn more.