Investment ads have flourished on social media showing you that you will surely become rich. Many do not realize that it is too good to be true. In reality, investments do not offer a guaranteed return. There was another influencer who presented a few years ago an investment in the capital market in certain corporate bonds on the idea that they would be safe, and even recently it turned out not to be so. The respective amounts cannot be honored.
Counted banknotesPhoto: Inquam Photos / Sabin Cirstoveanu
The capital market has its risks, and if you decide to invest, as I have said many times, you need to learn about it, not go after one or the other. A lot of literature has been written on the subject and you just have to search.
Returning to the topic of spikes, many people have hit on the social media platforms they use about an investment that would make them rich: a gas pipeline. Specifically, BRUA.
For those who don’t know, it would connect Bulgaria, Romania, Hungary and Austria.
However, you, as an individual, cannot directly invest in the pipeline, as those false advertisements advertise.
Can one invest directly in BRUA?
“It must be clearly stated that one cannot invest directly in this project. It is a project between several countries, which in Romania belongs to the Transgaz company and not a financial instrument in which you can invest directly. It’s like buying a meter of highway on the A1, ridiculous,” said Adrian Anghel, investment expert at OTP Asset Management.
First of all, he says, we should look for those who propose us investments, a simple search on the Internet and in the ASF Register is enough.
“Are there people authorized for this service? Does the company exist in reality? Do the proposed investments really exist? At the slightest hint of doubt, I suggest you abandon the idea. Investments are like trains, another one is always coming”, says Anghel.
If you see “guaranteed win”, you should ask yourself no question
“Unfortunately, the progress made in the area of artificial intelligence will make such advertisements more and more realistic, so this type of fraud will become more and more present. It was the accident method, now deep-fakes and dubious investments are used,” he explains.
According to him, we must develop our critical thinking, inform ourselves only from reliable sources and do our homework.
“Generally, these ads spread through social media, where it’s full of referrals. That’s where we have to be the most skeptical and look carefully in advance for the person or company that offers us this potential investment”, explains the investment expert.
In the area of authorized investments, he says, we are not allowed to make recommendations without prior profiling of the client, and not every firm is authorized for this.
“We apply a series of good practices, including avoiding short-term estimates, avoiding offering guarantees, precisely because investments present a certain degree of risk. We study well before investing on behalf of our clients and then carefully monitor those investments,” explains Anghel.
Any investment firm/investment management company/distributor of financial products appears in the ASF Register, which is public and can be consulted by anyone on the Internet.
- “Don’t invest without doing your homework first and invest your money only in what you understand!”
“Generally the people most vulnerable to this type of fraud are the oldest and most inexperienced in this area, so if you can, talk to them and tell them about these things because the fake ads will become so realistic that they will hard to distinguish from reality”, stated the investment expert.
Is there a guaranteed win?
“In the case of investments, no. Any investment brings with it a degree of risk, lower or higher, and because we want a higher return than the bank deposit brings us, we have to assume this risk as well”, he says.
Diversification of investments, in his opinion, is a method of reducing risk, periodic investments again reduce risk, increasing the time horizon reduces risk, but if someone guarantees you a profit when you invest, run to the other side.
“Don’t give anyone access to your accounts, don’t give anyone access to your personal data, phone or laptop. No authorized company will ever ask you for this!”, he added.
What other spikes have I seen on social media
Another stake is an advertisement for an investment in Transgaz, where you buy, in theory, a number of shares in the company through a dubious platform, and for an investment of 10,000 euros you will earn in 15 days an amount of 3,800 euros. At 15,000 euros, a “profit” of 6,450 euros is mentioned in 25 days, and at 25,000 euros, the gain would be 15,750 euros in 50 days.
I have seen an advertisement on a group of a person who offers you to invest 50 dollars, and the estimated profit is 750 dollars. It is not clear how long. For that you need to ask for more details. He asks you to join him in “this thrilling adventure.” It’s true, it’s thrilling when you see yourself running out of money.
Pay close attention to such advertisements. As Adrian Anghel also said: Run from them to the other side!