As dangerous as investment fraud is, It's preventable with due diligence - Rotimi Onadipe

In his 118th weekly broadcast, Rotimi Onadipe, MD/Editor-in-Chief of Internet Safety Magazine, emphasized that investment fraud can be prevented if investors conduct thorough due diligence before investing in any business, whether online or offline.

Onadipe highlighted that many unsuspecting investors have been confused, misled, deceived, and defrauded by investment fraudsters in recent years. He attributed this to the lack of due diligence by investors before committing to business ventures.

In his opening remarks, Onadipe explained that investment fraud occurs when a fraudster contacts an unsuspecting person with a highly profitable investment opportunity that carries little or no risk. The fraudster typically provides false or misleading information to persuade the investor.

"Anyone can be a victim of investment fraud," Onadipe said, noting that it can manifest in various forms, including cryptocurrency, stock exchange, real estate, and precious stones. "It always looks legitimate and sounds too good to be true. To convince, deceive, and defraud unsuspecting investors, fraudsters use attractive profiles, websites, adverts, and success stories from previous investors who have supposedly made huge profits."

As investment fraudsters become more sophisticated, Onadipe stressed the importance of due diligence before investing. He advised investors to watch out for red flags and avoid making decisions based on pressure or success stories from others. Instead, he urged them to conduct independent research and investigation on the individual or company offering the investment.

"Don't invest based on what you heard from someone, read in the newspaper, or saw on social media or other online platforms. Take the time to do your own research," he said. "Check if the individual or company is registered with the appropriate authority, but be aware that some registered fraudsters still manage to deceive people. Many such cases are currently in court."

Onadipe recommended searching online for the name of the individual, company, or investment along with terms like "scam" or "fraud" to uncover any fraud-related issues.

In his final remarks, Onadipe advised investors to gather information about the reputation of the individual or company offering the investment from friends, colleagues, family members, and the public. He also suggested consulting with experts in fraud prevention for guidance before making any investment decisions.