Watch out for investment scams that guarantee easy money. Scammers are skilled at making you believe that the investment is legitimate, the profits are significant, and the risks are minimal. There’s always a catch.
Here are some typical strategies employed in trading scams, however scammers frequently modify their techniques to stay on top of the most recent news or trends.
How to recognize a trading scam
Online and social media platforms are frequently used to advertise investment scams that use online trading platforms. To get individuals to invest in their fake platforms, scammers frequently make high-return promises and utilize phony celebrity endorsements and pictures of expensive goods.
What to notice:
- Cold calls/unexpected contact
- No licensing and regulation
- Offer of unrealistic returns
- You can’t withdraw your funds
How to protect yourself
Make sure the trading platform you’re using is authorized to operate in your country by conducting your due diligence before engaging in any online trading.
What you should look for:
- Licensing and regulation
- Make sure they are not a clone—a classic scam involves pretending to be a legitimate, approved company (referred to as a “clone firm”).
- Be cautious of online and social media advertisements that promise investors a high rate of return.
It’s critical for you to act quickly if you think you’ve been the victim of a trading scam. Many people mistakenly feel that once they give money to a scammer, their money is lost forever, but that isn’t always the case.