Nowadays, people are more inclined towards investments to receive profit over time. Investments are not only a regular source of income but also assist in providing potential long-term assets. To secure money and add an income source that is regularly updated, investment is safe.
However, scammers trap many people who invest these days. These scammers may tell you that your money will be boosted in a brief period. Moreover, they also put forward certain attractive ways showing that your money will be augmented. Hence, you must foresee the details, documentation, and processes to avoid such scammers. You are investing your hard-earned money, so keep an eye on frauds.
In this blog post, we have enlisted scams that can harm your assets by maligning influences and activities. Read the list and stay safe from fraud.
1. Pyramid Scam
Pyramid schemes involve multi-level marketing in which fraudsters try to manipulate the investors by ensuring that they are reliable. They run advertisements and marketing on multiple platforms. Scammers claim that by investing a small amount of money, you can get decent profits in a short period. People invest by considering that they will make a pyramid of money. However, fraudsters may transfer profits initially to win your trust. Once you have accomplished trust and invite your close friends and family members in the business, they run off taking your money. Before investing in online systems, always ensure the reliability of the company by all possible means.
2. Advance-fee Scam
In this type of scam, fraudsters request investors to pay some advance payments. In exchange, they will get high exchange money. Once investors deposit their money, they never see those scammers again. Some other fraudsters also come in, claiming that they will refund your money if you buy their low-priced stock or things similar to that. Instead, they befool investors for a second time, and scammers fled away, leaving you miserable. It is always recommended not to pay in advance, especially in foreign countries. One should also avoid guaranteed loans since you will not be able to locate scammers ever again.
3. Offshore Scam
Offshore scams are of multiple types, ranging from advance fee payments scams, pyramid scams, social media scams, etc. the only common thing among offshore scams is that they want you to transfer money outside your country. Mainly targeting U.S based investors, these companies try to manipulate the seller by claiming errors. For example, a local agent who is communicating between investor and buyer, that due to some technical errors in money transfer, they need to pay a little. After this one transaction, clients and foreigners will no longer be available. Investors are fooled by attractive packages such as high money returns, low or no tax exemptions, and work being done without any security regulations.
4. Social Media Scams
Nowadays, all social media applications, websites, and platforms are running advertisements. People are impressed by zero-risk investments. Such scammers who try to grab hard-earned money from investors make fake accounts. Not only accounts, but they also make emails and fake websites to show that they are legitimate and reliable. With one single login to their websites can take all your bank information, including credit and debits passwords, from you. If a social media company is claiming high returns without loss, an investment offer you did not ask for, or asking you to invite others, there are high chances that the scammers own the website.
5. Crypto and Forex Scams
Forex trading and cryptocurrency have gained worldwide recognition in the past few years. Being the most prominent trading services, these trading has also received immense attention from scammers and fraudsters. They urge you to invest money outside your country. They assure their investors that they will not utilize your money in investments and return full money in case of loss.
However, at some point, they urge their investors to deposit money in a foreign country, and once it is done, you will never meet these traders again. You may invest thinking that you are not familiar with crypto or forex, and these traders will value your money, but do not make this mistake. Prior knowledge and well-curated research are mandatory before investing in any kind of company or business.
As per Invest Right Organization by BCSC's Common Investments Scams:
"Fraudsters take advantage of global events and breaking news to lure potential investors with the expectations of significant returns. At this time, it’s especially important to be vigilant and know how to identify, reject, and report investment fraud."
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References:
- https://www.investright.org/fraud-awareness/avoid-investment-fraud/common-investment-scams/
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