“Watch Out for Investment Fraud” plus 1 more

Posted: 12 Mar 2012 03:55 AM PDT

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One of the best ways to build wealth over the long term is to invest. Wise investments can overcome market downcycles during the long-term, and help you efficiently amass a larger nest egg.

However, not every investment opportunity is a legitimate one. Scammers trying to get their hands on your hard-earned cash can catch you up in schemes that result in losses for you. It is important you became aware of the common signs of an investment fraud and know where to report it.

Online Investment Fraud is Growing

Tamera Van Brunt, the Director of Communications and Investor Education with the Alberta Securities Commission provided some interesting information on investment fraud. One of the most common ways that Canadians are approached with investment fraud is through email. 33 per cent of approaches are made through email.

I found this interesting — and telling. Perhaps you have seen some of the emails. Many of them purport to offer “inside tips” about hot stocks. Some of them are pump and dump scams, where you are encouraged to purchase “cheap” stocks to drive up the price. As soon as the price goes high enough, those behind the scam sell the stocks for profit, and you are left with worthless stocks. Other emails are simply attempts at phishing, trying to get personal information for identity theft or for other purposes.

The popularity of the Internet is growing, and it is increasingly being used as a resource when it comes to investing. From online brokers to investment tips to investing opportunities, many people are using the Internet to become involved with investments. However, this also means that the world of online investing is becoming a gold mine for unscrupulous fraudsters looking to scam you out of your money.

Following “tips” and pursuing investment opportunities that are brought to your attention, out of nowhere, is usually bad idea. You want to make sure that you know where your information is coming from. Clicking on any link in an email that takes you to a website where you enter personal information and buy stocks should be considered suspect. Even if the email appears to come from a respected online broker, be wary; it could be a scammer trying to use the good reputation of a respected company to gain your trust. Instead, if you want to invest, go directly to the official home page and start from there.

Investment Scam Red Flags

More on Scams & Fraud

Van Brunt also points out that there are some red flags that can serve as warnings signs that you might be dealing with a fraudulent investment. One of the biggest red flags is the promise of high returns with no risk. As always, if something seems too good to be true, it probably is. All investment comes with some level of risk, and there is no way to completely alleviate all of it.

You have to understand that all investment has risk. There are some investments that have lower risks than others and even some, like GICs, that are practically guaranteed. However, these investments with lower risks also come with lower returns. Anyone promising high returns for a low-risk investment is likely scamming you. Potential returns are almost always correlated with your level of risk; in order to see higher returns you have to be willing to take on higher risks.

Additional red flags to watch out for include:

Upfront payments: When you are asked for upfront payments, premiums, or fees, without being offered anything solid in return, that is a definite red flag. While there are some products that are worth paying for, you need to be discerning. Research your options, and be careful of where you are sending your money. Make sure you are dealing with a reputable company first, and don’t send large amounts of money as “buy-ins”, or for “hot tips”, or “insider information”.
Pressure to invest immediately: A solid investment now is likely to be a solid investment later. If you are being pressured to make a decision right now, and being told that you are going to miss out, that could be a red flag that you are being approached with a scam.
Tax-free and offshore: Some scammers will tell you that your investment is tax-free [except in a tax free account]. This is a lie. At some point, you pay taxes on your earnings. Additionally, you might be told that an investment opportunity is offshore, and that it comes with certain protections. Be wary of these investments, since there is usually dishonesty involved.
Flashy or slick appearance that doesn’t hold up: Many fraudsters produce websites, advertisements, and other materials that appear slick and professional at first glance. However, when you look closely, things suddenly don’t seem as legit. Spelling and grammar might be off, or style and flow might be unnatural.
Almost no quality information: Finally, watch out for excessive use of buzz words and jargon. Also, be on the lookout for complex diagrams. All of this is designed to make it look like a scammer knows what he or she is talking about. It’s also designed to confuse potential marks. If it is too difficult to decipher what an investment is all about with the information you are given, that could be a sign that you are dealing with a scam.
Difficulty finding company information: Another sign that you might be facing a scam is that you can’t find solid information on how to contact the company. You might not be able to find a valid phone number, or there might only be a box for the address, instead of a physical address. You might not be able to find a good email address. If all you are offered is a contact form, it could be a problem.

It’s important to be vigilant and pay attention to the investment opportunities you are presented with. You even need to be careful when taking investment advice from friends, neighbors, family members and co-workers.These people you trust probably aren’t trying to rip you off; they are likely victims as well. You need to be careful before you put any of your money at risk.

If you do run across an investment scam, though, it’s important to report it. Canadian Securities Administrators offers a site where you can report a scam. Because so few Canadians report scams, it is vital that you share your experience and warn others about the dangers of some of the scams out there. Stay on your toes, and be sure to report scams you run across online.

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Shoeboxed Review-Tracking & Organizing Receipts Made Easy!

Posted: 12 Mar 2012 03:30 AM PDT

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Shoeboxed.com - Scan Receipts and Business Cards

If you're like me, it can be almost impossible to keep track of your receipts. You put them in a desk drawer or in your wallet only to not be able to find them when you need them. You may never have heard of Shoeboxed, but it is a website that keeps track of your receipts for you. In this Shoeboxed review we will show you how it can make life easier. The Shoeboxed app for iPhones allows you to save your receipts right from your phone. It makes it easy to store a business dinner receipt without having to remember it later. When you visit Office Depot, you can save your receipt for office supplies right in the store.

Get your FREE Version of Shoeboxed now!

How it Works

First register online and then download the free app on your phone. Once you download the Shoeboxed app onto your iPhone, you simply take a picture of any receipts you want to save. You can add a note for future reference and submit it to the website so they can extract the information. You will receive an email confirmation to let you know the receipt has been received. I was surprised by how easy the whole process was. They promise to have the receipt available within one business day for viewing. The item will show up along with other receipts on your main screen. The items are categorized by type of receipt so that it is easy for you to view. You can use this page to review your original receipt for warranties or to submit an expense report.

Benefits

One of the big benefits to using Shoeboxed is that it is accepted by the IRS. You can submit receipts saved online for your deductions on taxes. This is beneficial if you claim itemized deductions or are self-employed.

The receipts are stored online in Shoeboxed's document filing and management system, which is secure but available to you at any time.

The receipts are easily converted to PDF, XLS, or CSV to make it easy to track expenses monthly, weekly, or even daily. This allows you to keep track how much you are spending in specific areas, can be great for budgeting.

You can use it in your business to create invoices for your clients. You can integrate into Freshbooks, QuickBooks, or other accounting programs to save you time entering the same information twice.

Price

The basic app is free to download from iTunes. Once you have downloaded the app, you can choose the plan that suits you best. The DIY plan allows you to continue the service for free. You can upload as many images as you want as long as you extract all of the data. You can submit up to five documents from your iPhone for them to extract without additional cost.

The other options are Lite, Classic, and Business plans with different costs for each. There are several differences between them, but the main one is the number of documents that can be submitted. If you're like me have a lot of receipts and you don't want to enter the information yourself, one of these plans would work great. I think the light version might be good for most individuals, if you are self-employed the Business plan can be very useful. If you go on an annual plan you can get 2 months for Free!

All of the plans allow for unlimited storage so there is no worry of running out of space for your documents.

All plans come with a 30 day free trial when your credit card will not be charged. You can scan up to 50 documents during this period. You are not bound by a contract and can upgrade or even downgrade at any time. You can also choose one of the annual plans to save even more money if you are fairly certain how many documents you will need to scan each month.

Other Uses for Shoeboxed

You can store other documents on Shoeboxed besides receipts. I enjoy the convenience of storing business cards that I receive online. When you meet someone and they give you a business card, you don't have to keep it with you. You can scan it to Shoeboxed and access it anytime you need to contact that person. It can be used like a mobile rolodex.

You can also store your bills online with Shoeboxed. When you get a bill, scan it in and it will be readily available for your convenience. This allows you to check due dates from anywhere so that you pay bills on time.

You can manage several clients with one account on Shoeboxed by using the Multiple User Accounts feature. It will let you track expenses and create reports for each client.

Shoeboxed is a great app for stay-at-home moms, working singles, busy families, or self-employed business entrepreneurs. You will have the convenience of storing and organizing your receipts on your mobile device; it will save you time and money by accurately tracking and recording your expenses. The app has improved my record keeping in the short time I've been using it and with a free trial, you can't go wrong.

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