15 signs to spot a fake investor

This is a guideline to protect yourself from fake investors in different social and business networks.

Please always keep in your mind that 95% of the investors listed in many networks are fake. Investors that will spoil your time and money unless you are very careful. Please be alerted when the following things happens:

1. You are getting contacted from a different id or name that is not listed in the network or by googling you cannot find the details of that specific name or the ID.
2. When he say “I am not the investor, I will introduce you to someone”
3. When he seem least bothered about what you are going to do and simply saying “I am interested”
4. When he say “such funds cannot be transferred through bank”, let me use “Prudential Services” or anything like that.Make sure you will not end up paying in advance even Rs.1/- as transfer charges or service. charges. If you did you will loose that money.
5. If he says he is planning to invest all these funds in your country and want to settle in your country – be assured that he is fake.
6. Tell him you will not pay any advance money as charges or duties. Those who want to make you to pay in advance are not real investors. Remember they are planning to invest in your company. Those who cannot afford to pay bank charges or transfer charges are not going to give you any money.
7. If they are not giving you street address and contact phone numbers. That clearly indicates that he is not real investor. Make sure you call them and talk on phone at least a few times.
8. Ask them to deduct processing charges or transfer charges from the fund they are transferring to you. If he say it is not practical and insist on your payment in advance they are fake, you will never get money from him.
9. When he come up with last minute surprises they are fake. They may play a drama, something like, the man came to meet you with a demand draft of US $NNN is held in Bandaranayaka International Airport and customs need Rs.55000/- to clear it. This is only an example. Never ever make such payments.
10. When they ask you to pay their travel and accommodation expenses to come to see you, they are fake investors. Real investors are not bothered about the travel expenses to get a good project and they will pay happily.
11. When they say the money is illegal and cannot transfer through bank. Spot on, he is a fake investors. Do you really want to end up in jail, otherwise?
12. If they suggest you to take more money than what you asked for they are fake investors. Real investors will never offer more money that what you asked for.
13. Do not do anything illegal as part of seeking funds. Chances are very high that you will be blackmailed for this in future.
14. Many did get Reserve Bank notifications to pay some charges to release funds to your account. Please know Reserve Bank do not have such a system. Fund transfer to any bank accounts in Sri Lanka will come through without any problem if the transaction is legal.
15. Be vigilant! There are thousend’s who lost huge money and valuable time running after fake investors

I am sharing this because I was also a victim who trapped by a fake investor and lost pile of my valuable time.

I help Startups and Brands specifically to design and develop MVP products. If you need to talk, please contact me via http://yoosuf.me.

Originally published on Quara by Crowly Mathew Arackal