How to recognize and avoid investment scams?

How to recognize and avoid investment scams?

In this post I will write How to recognize and avoid investment scams. There are many sites/companies offers investment plans with high daily interest. Problem is very often site just disappear over night and investors lose money. Most of them are not legit  and I will show you in this post how you can be sure is company a legit or not. Some companies has registered but dont have permission to offer you an investment contract.

How to recognize and avoid investment scams?










How to check if a company is registered?

To be sure if a company is really registered or data on website is fake you can check on the special websites. Every country have a companies register on the official website. It is an official list of all the companies in the country with all information about them such as: physical address, who is CEO (Chief Executive Officer), business type, registration date, expiry date etc…

Problem is that some companies are registered but not for investment contracts (financial field). You may see some websites with fake data, because of that I made this post. I will use one example, one website/company from United Kingdom, online and registered only about 10 days.

When You will read this post most likely that website will disappear but I will show you domain: If  a website still exist you need to use copy-paste because it is not a clickable link.

The first step is to visit about company section and find address and some other data. After that because company is from UK you need to go to the official website – companies register with list of all the companies in the United Kingdom. There in search field you need to enter company name (or address), in this case Days Way Limited. You will get some results and you need to click on the first result with exactly name as you see on the website. How it looks I presented in the video below. Notice: depends when you are reading this post there is possibility that company maybe dont exist anymore or there is some new company with the same name. Now you need to compare data from company website with data from companies register.

Official website with companies register in the United Kingdom is HERE. (companies house)

In this case data from companies register match with data from company website. But there is one big problem: in companies register there is no nothing about financial field  (type of business). Because of that the next step is to check does this company have regulated their financial products or services in the united Kingdom (in this case investment contracts).

The second step is to visit The financial services register HERE. In this case there is no data for this company and that means Days Way Limited have no right to offer any financial product in the UK – in this case investment contract.


It is important to know that financial products (such as investment contracts) are regulated in every country and every company must be regulated with law. If not every financial product from that company is illegal and investors are on big risk and not protected by law.

If a company is registered might be a good sign but you are not 100 % safe, every investment is a risk. Be very careful with companies registered in the Panama, Belize, Seychelles and similar. For less than $1000 individual can register company on easy and fast way, pretending that have a legitimate business. This type of business very often is called HYIP, more information in the next section. If company is from countries mentioned above it doesnt mean that companies are not legit, but you need to be more careful in compare with companies registered for example in the United Kingdom, USA, Australia, Germany etc.


What is HYIP?

In this section I will write about type of investment fraud. For legitimate HYIP you can read more information on Wikipedia here.

HYIP shortcut is coming from: High Yield Investment Program. Creators set up a website and offer very high fixed return – usually more than 5 % daily. In example that I presented in this post return starts from 7 % daily. This is a type of ponzi scheme: early investors will be paid from money invested by new investors. To stay anonymously admins use web hosting that offers “anonymously hosting”. Very often admins are talking they have some other business behind but very often this is not a true. For users (investors) is very hard to know what is a true. There are special websites which monitor HYIP programs and on that way trying to help potential investors. Some websites disappear after just few weeks but some of them exist much longer, even more than 1 year.

In video I used this HYIP monitor to show you Days Way Limited not paying SCAM status.

Usually investors try to get in early time with hope that program will last at least until they return investments. I dont recommend these type of business.

If you are interested for legit business feel free to visit Affiliate marketing section on this blog. I hope that information in this post is useful for you. If you have any questions or doubts feel free to place a comment.

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