There will be lessons that can be learnt so that you are not caught in these scams. You have to worry about reputable organisations, as many of them are now engaged in these type of practices in their pursuit of profit.
It is easy for a consumer to be cheating from the following types of products:
a) structured and banking products
b) insurance products
d) trading in foreign currenty
e) land banking and other non-listed products
f) exotic products sold by private bankers
Nearly all investments are similar to gambling. The investor in speculating (i.e. gambling) on the price movement of the product. The speculator makes a profit when the price goes up and makes a loss when it goes down. The investor also has to make a choice in selecting the right product to invest it.
It is easy for a small investor to be cheated in this environment by the other party who has better information or the ability to create the product to their advantage.
Even the cautious investor, who does not wish to take any speculative risk, can be conned into investing in products (such as the credit linked notes) that can wipe out the entire savings, without providing a commensurate rate of return. Some are offered products that have already turned bad, but are packaged in a misleading manner at an over-inflated price. They are being cheated!
Do come to my blog daily to read about these stories and take the lessons to avoid being cheated of your hard earned money.
Tan Kin Lian