Online investing scams are becoming a disaster for some people as they lose their life savings to these scammers. Scammers orchestrate these scams and make them look legit, so people fall prey to these ingenious frauds. It is alarming for new traders who need to learn more about fake and genuine investment platforms. Online scams are divided into many categories and classes, so you can identify and prevent them by knowing them. This post will discuss these online scams and tell you what to do if you encounter scammers.
Romance or Relationship Scams
You may think it has nothing to do with any investment, but if you look at this scam practically, you will see that it is a form of investment. The scammer will first build a relationship with you and try to gain your trust via social media and online dating platforms. The scammer will contact you regularly and tell you about an investment scheme that will make you rich. For that, you have to lend the scammer some money. Once they have the money, you are done. Avoid if someone you have yet to meet face to face asks for money or talks about these investment opportunities. These investment scams are spreading rapidly on dating sites, so avoid suspicious people like them.
Crypto Scams
Another major scam becomes a nuisance in online platforms and social media. No agencies or government track crypto assets and transactions, scammers are using loopholes to defraud their victims. After defrauding people off their crypto investments, scammers target the same victims again but this time for money recovery. If someone randomly offers you recovery services for crypto, avoid them at all costs, and these scammers often ask for upfront fees to do the job. Avoid these people at all costs, and report this fraud to a local consumer protection agency before making any Crypto investments. The agent may be able to recover your stolen crypto fund, but they will not guarantee you anything. The only way to save your investment is by staying vigilant.
Empathy Scams
This is a broader subject because these investment scams are very similar to Ponzi or pyramid schemes and are controlled by many scammers. These scammers will pose as representatives of minorities struggling in a certain country or seek charity to help people dying from poverty. They market their charity work by spreading false images on the internet to gain sympathy from the masses and ask for money. Once they have enough money, the scammer will delete all these fiasco, and investors will never know what happened. Since you gave money to the scammers in the name of charity, the chances of recovering that money could be much higher.
Pump and Dump Frauds
Scammers pretend to be businesspersons to run these investment scams. They will even promote some good deals on low-priced stocks, promising bigger returns in one year. As the scam reaches more people, they also start to buy these false stocks, which are practically associated with no businesses. Once the value of the stock reaches a higher level, the scammer sells the shares, and the stock plummets.
