Investment frauds are a widespread financial scam that targets gullible people wanting to increase their wealth via online investment. These frauds are divided into various forms, but in all cases, one common thing can be found: high return with low risks or no risks. These financial frauds are happening all around the globe, so every day, countless victims fall into these traps and lose their hard-earned money. What would you do if you ever got in this situation? That is what we are here to suggest to you.
Some Popular Investment Scams
Let’s look into history and even in the present day. We notice some disreputable investment frauds that have made the public extremely angry, even though governments could not do anything about it. Anyway, here are some infamous investment scams you should watch out for:
Charles Ponzi scheme
It involves global reply coupons, transforming it into an embodiment of a fraudulent investment scheme. The scammer tried to persuade investors to buy their scheme to achieve a 50% return in 45 days with minimal investment. Similar scams are still happening, so look out for them and do not believe in their made-up scheme with no previous record.
Financial Security
Some scammers have introduced this new scam on the internet and target investors who are making high investments in different places. Their pitch is to save investors’ investments by giving them financial securitycoverage. This coverage works as insurance if the investor loses his money in the stock exchange, but the problem is they never cover up the loss; instead, they push investors’ money into losses.
Cryptocurrency Investments
We often see new cryptocurrencies introduced every month, but not all of them are genuine; in fact, 70% are fake. Like Ponzi schemes, the scammer introduces potential buyers to their website to buy their highly profitable crypto coins, which are supposed to grow 100x in 6 months or less. These investment scams are still active today and loot cryptocurrency holders since cryptocurrency is a decentralized digital currency; thus, it is hard to track.
What you have just seen is just the tip of the iceberg; these scams get even darker and more dangerous, especially for the victims. Money recovery is possible after you are scammed, but it depends on your response time. For example, if you do not reach out to the authority in time, you will lose the money.
How to Recognize Investment Scams and Act
Seeing the warning indications of investment scams is essential to avoiding financial disaster. The following are warning signs to be aware of:
- Great returns are assured with no or little risk
- Pressure to make an investment right away or act urgently
- Investing firms or experts who are not licensed or registered
- Assurances of insider knowledge or exclusive investing opportunities
- A refusal to offer comprehensive investing information or evasive justifications
Whenever making investment decisions, it is crucial to conduct in-depth research and consult with reliable financial experts if anything looks too ideal to be true or raises doubts. You can even report these scams to the local consumer protection agency to freeze their scammer’s accounts permanently.