Avoiding Financial Scams
Generally these are best avoided!
Every so often an investment opportunity may be suggested to you. Sometimes those opportunities offer extremely good rates of return on the investment (either in a very short time frame, 6 months, or with high rates of return >10%). It is always worth approaching such "opportunities" with a high dose of scepticism.
The reality is there ARE scams and schemes that are set up to defraud the naive investor. Beware of scams and schemes. Many Christians have been hurt badly through Ponzi scheme and other investment scams. (Also see: pyramid schemes)
- Always be very careful if an investment is offering huge rates of return instead of modest rates. Things that look to good to be true often are!
- Even if a friend or trusted figure is assuring you of the validity of a scheme, be very sceptical. They may very well have been trustworthy in the past but still could themselves be deceived by a scheme.
- All major financial decisions for a YWAM centre should be handled by a legal board (either for the centre or Nationally). The board is there as a safe guard. Make sure you use them and they do their job. A limit should be set on what level of finance requires the boards approval before acting. Make sure this is understood and adhered to!