As financial desperation becomes more of a reality for many people, more and more people fall for investment scams. Financial scams are also becoming more sophisticated as technology evolves in the area of artificial intelligence. With so many scammers around, it’s important to be able to identify an investment scam. More importantly, how can you protect yourself from getting scammed and losing your hard-earned money?
What Is An Investment Scam?
An investment scam involves getting you to part with a portion of money on the promise of a financial opportunity that is questionable. Fraudsters go after individuals and businesses, and so a business can also stand to lose large sums of money if they aren’t careful. Most scams are presented enticingly. They are often believable at first, especially for those who are financially desperate. The result is sadly disappointment and deceit as these scams are mostly empty promises.
How To Identify Investment Scams
With so many investment scams in the mix, it’s important to be able to identify a scam before you’re sucked in. Here are a few tell-tale signs on how to identify a scam.
Always Too Good To Be True
Scams play on people’s fears when it comes to financial gain and independence. Many scams offer higher than usual investment returns which trump the lower interest rates offered by reputable financial service providers. Scammers are using online platforms to lure in potential investors. Scams can easily be accessed by online links on search engines. Investment scams often have compelling webpages which mimic authentic investment webpages. This can include everything from design elements, investment jargon, to a ‘meet the team’ page with fake team members inserted.
Many people are finding themselves in financial difficulty largely brought on by the COVID-19 pandemic. It’s important to hold desperation at bay. Make sure you’re never pressurized to make a quick decision over the phone. Also, beware to provide sensitive information over the phone. Scammers can play of financial desperation and the result is that many people fall for scams such as phishing attacks.
Phishing is a hack that uses the cover of an email or a text message. The aim to trick the recipient into believing that the message involves something they want or need. Messages contain a prompt such as: ‘Get your money here now’. Once the malicious link is clicked on, hackers are given access to personal information on your device. Other scams may include offshore investment scams, pension scams, malicious tagging scams, pyramid schemes, and Forex scams.
Authenticate Contact Information
Scammers very seldom link their offering or business to a physical address. You should be cautious if only a phone number or P.O. box number is provided. You need to be able to verify their operating address in case of any follow-up required. IF they do provide an address, use whatever means necessary to verify that it’s an accurate address.
How To Protect Yourself From A Scam
Being alert to the fact that scams exist is the first step to avoid an investment scam.
Here are some helpful tips to prevent being scammed:
- Don’t open suspicious texts, emails, or pop-up windows on browsers
- Don’t respond to phone calls requesting remote access to your computer
- Keep your personal details and change your passwords regularly
- Check your security and privacy settings on social media
- Only use trusted and authenticated online shopping websites
- Be suspicious of any promises of high rates of return and quick profits
- Don’t fall for high-pressure sales
The Investment Scams Resource Blog
An excellent way to prevent being scammed is to keep up to speed with an up-to-date anti-fraud blog. Antifraudnews.com is the world’s premier anti internet scam and anti-fraud information blog. As a member of the Anti-Scam Alliance, you can rest assured that the information provided in the blog is accurate and trustworthy. Make sure your investments are safe and secure by keeping up to date with the blog that is trusted.