
Scams are nothing new today because as long there is money to spend, there will always be at least one person that will take advantage of naive people.
In the internet era, scams have become more complex, and this way, more and more people are being deceived by such illegal practices.
On social media platforms we can see today a lot of comments, advertisements, referencing investment advisers and amazing opportunities that miraculously made those involved very reach in a pretty short time.
You can see many ads on YouTube or other media platforms, where self-made millionaires want to teach you their way of making money in the crypto world, or day trading, or forex or whatever you believe in.
Some Scams Are More Than Obvious
Luckily, some of these scams seem quite ridiculous, and this thing makes them less appealing to a larger number of people, which means that only a few will get scammed.
This happens usually because many people want to start investing (because they have money to invest), but they don't really understand the world of investment that much, so they can easily fall into a trap prepared by scammers.
Without the proper knowledge, it is extremely hard to discern between a legitimate opportunity to invest and a pure fabrication.
People that never invested before, have a pretty hard time understanding the world of crypto, day trading, forex, etc., so they are used to listen to people considered 'experts' in the field, which shares with them different 'tips' from the crypto or stock market world.
However, because they don't know much about these words, they can easily fall into the trap set by scammers, and they start losing money, some of them small amounts, while others pretty large amounts.
If you've already been scammed, you have to know that there is a company in New York called Noble Ally Finance Security, which is a full-service recovery consultancy for Currency Trading including bitcoin & other cryptocurrency and forex scam.
They can help you whether you’ve been the victim of a forex, online, investment or any other type of scam, regardless of the amount of money you have lost.
The Most Common Investment Scams
Next, I will show you the five most common investment scams, so that you will never be fooled by them again.
1. Advance fee scheme
This involves the scammer trying to convince the victims to send them money.
To be convincing, the scammer pretends to be a trader and asks the victim to send him money to produce profit.
In some cases, the scammers can be more targeted and approach people that lost money due to an investment, so they promise the recovery of the loss. However, to initiate the process, you first have to pay a processing fee or a tax, and this is the step in which you can lose money.
2. Boiler Room Scam
This is usually used by call centers that use unfair or dishonest selling tactics.
3. Pump & Dump scheme
In this scam, fraudsters will first purchase a sizeable amount of a given investment. They usually focus on a small public company or a recently released crypto currency that is lightly traded.
Being painted as a highly promising investment (hot tips about a specific company which you can take advantage of), you can lose a lot of money over time.
4. Ponzi scheme
This is an old scam, in which fraudsters usually market some sort of investment opportunity that promises high return for an upfront payment.
5. Fake gurus (Investment Seminar Scam)
These fake gurus (self proclaimed millionaires), can be found today all over the internet and they offer you the secret to making money from stocks, crypto, forex, online businesses, etc.
You lose money when you buy their service.
Final thought
Fortunately, while the method of delivery has changed over time, the essence of the investment scam is nothing new. By learning the basics of any market, which you intend to act as an investor, you will be better protected from simple and even complex scams.