The rising expenses increase the spectrum of people looking for ways to earn money. As people go on to find new ways to earn a little extra money, investment and trade were introduced to the market. This market, as of now, accounts for the most amount of money in this world with a net worth in trillions. However, with the success of investments come scammers and cybercriminals. Investment scams are one of the most popular kinds of scams.
Types of Investment scams
The most common type of investment scam is done through the method of cold calls. In this type, the scammer usually calls up innocent traders who are just beginning out in the world of investment or haven’t started yet. These calls consist of convincing and persuading these traders to invest in the scam company. To make them seem reliable, these scammers even make up fake websites in an attempt to convince the customers into investing their money. The scammer will also claim that they have a government-regulated license. In such cases, the scammers are usually calling from overseas. This is done in an attempt to prevent these scammers from getting traced.
Another investment scam method that is prevalent all over the world is through warning signs. In such a situation, the scammer will send you an email or uses advertisements to lure the customers into the trap. Once the customer taps on the link in the email or the advertisement, they are redirected to the scammer’s website that might look legitimate. Convinced from the scammer’s tricks, the innocent traders soon start investing their hard-earned money and end up getting deceived.
Pump and dump is yet another investment scam that is used to trick a lot of people around the world. In this kind of scam, the traders are lured into a certain investment by the fraudsters who keep on increasing the price artificially. These scammers then sell their shares at an inflated price thus causing the stock prices to fall. This leads to the traders experiencing a loss of money.
Warning signs to look out for in Investment Scams
You must not entertain the phone calls from random numbers wherein the other person is trying to convince you into putting your money in an investment scheme the scammer often tries to extend the call duration by giving various scenarios and excuses.
Do not click or reply to advertisements and emails that endorse risk-free investment or anything on the lines of that.
When a certain scammer claims that they do not need a government-issued license or that they already have one, you must always cross-check with the regulator’s website to make sure.
You must always read reviews and do your research before investing your money anywhere. This not only helps you in staying away from the tricksters but will also help you in gaining a better knowledge about the investments.
What to do if you are stuck in an investment scam?
If you are or have been a victim of any kind of investment scam, you should not feel embarrassed or keep quiet about this. Scammers use psychological techniques to lure the traders into the trap and it happens to almost a hundred people every day.