Russia Due Diligence Services Help Investors Avoid Fraud

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Russia Due Diligence Services Help Investors Avoid Fraud

It is surprising that in a world that is full of fraud, investors continue to skip simple practices that could save them from bankruptcy and great financial losses. The lack of proper due diligence is a common thing amongst fraud victims, who failed to consider an investigation before making their ill-fated investments. However, every day more and more investors are realizing how important it is to have clear and specific information that can shed a light on the real deal.

Professional Russia investigators from Russia PI have been witness to many fraud cases, and have seen many others that were legitimate deals. Fraud experts continue to emphasize that due diligence is important always, not only when there is a red flag. In business deals, some of the fraud schemes are so sophisticated that no red flags will appear until it is too late. Investment is about money, and whether the amount is moderate or astronomical, there is always something to lose.

Some of the most important things to consider are:

Make sure you verify the person you are dealing with. Verifying credentials, professional certifications, employment claims, experience, criminal records and history of fraud is basic. Many people still consider the deal only, but fail to check if the person who they´re dealing with is trustworthy. There are fraudsters out there looking for investors who they know are willing to invest in a reputable company. But the question might not be the company, and checking the market performance might not help. You might want to check the advisor, the broker, or whomever you are dealing with first.

Don´t get too greedy, it´s better to be smart. Investigators have seen many cases of fraud in Russia were the victims were manipulated with an offer they just could not deny. When the offer is too good to be true, it probably is. When you are being pushed to invest now or never, you better take the second option or at least negotiate some more time to research. Don’t be pressured.

Be wary of brokers or advisors who seem evasive. Transparency should be rule number one when investing. If the person you deal with is trying to hide something, or tells you that the information cannot be disclosed, then it is possible that something fishy is going on. Information should flow back and forth transparently, if there is something you cannot know, then maybe your money should be invested there either. Speak to a professional about getting evidence.

Do not trust your intuition. Many fraud victims repeat after discovering the scam that they just felt good about the investment and they did it. Investing is not only a matter of intuition, it takes a lot of researching, gathering information and analyzing data. Decisions should not be based on gut instinct, but rather accurate information. When investing in Russia, take your time to investigate or hire a professional investigator in Moscow or the closest city who can verify the facts.

Ask as much information as you feel you need. If you have questions involving trust in the persons who are investing with, do some due diligence. Every piece of information should be clear. Do not invest if you don´t feel like you are seeing the whole picture. Remember, you should verify what you can on your own, but don’t try to play the role of a private investigator if you don’t have the skills, training and resources – especially in Russia. Experts on the ground in Moscow and St. Petersburg have the experience and expertise to verify the facts and protect you from fraud.

Investment fraud can happen to anyone, no matter how much of an experienced investor you are, or how long you´ve been dealing with business in Russia. Hire a professional and avoid being a victim. Russia is far from transparent, and there are serious language and cultural barriers. If you’re considering hiring or investing in Russia, contact us today for expert and discreet advice.