In investments, scams refer to projects where there is a delay in payments or they stop paying interest on income, dividends, and there is a breach of deals.
Scams on Financial Platforms
One of the popular financial markets is Forex, where there is the opportunity to earn passive income through investments and brokers. Therefore, scammers look for victims here by offering private intermediary services. An inexperienced person may fully trust such a dealer and become a victim of a scam. The actions of such fraudsters are aimed at attracting more money, which often leads victims to them.
Scams on financial markets are committed by scammers on the platforms of brokerage or investment companies. Such organizations are called scammers. As a rule, these fraudsters deliberately deceive clients who have invested their funds and trusted fake brokers. They simply appropriate the profits and investments, and client payouts are not made. Getting the money back in this case is quite difficult.
How to Protect Yourself from Financial Fraudsters
The main goal of a fraudster is to deceive the investor and take over someone else's funds. This often happens on investment platforms where people are looking for quick earnings and dream of getting rich. To avoid becoming victims of fraudsters on financial markets, it is necessary to follow a few rules:
- do not trust the first broker you meet, approach this question thoughtfully, weighing all the pros and cons;
- consult friends who are engaged in investments in financial markets and ask their advice regarding the intermediary;
- listen to recommendations, read reviews from experienced people and then act;
- do not download applications sent from unknown sources;
- avoid clicking on links;
- having a variety of passwords and high-level protection will help;
- be vigilant and avoid meeting scammers online and on investment platforms.
Fraud on Financial Services
There are the most common schemes of fraudsters on financial services, in principle, they are known, but the number of victims still grows due to the high level of fraudsters. Psychologically prepared scammers skillfully gain the trust of the victim, depriving them of their savings. Often, crooks use schemes such as:
- bank card or electronic payment fraud;
- cryptocurrency investments on financial platforms;
- payment manipulations;
- fake brokerage companies.
The main target of a scammer is money, so all schemes are designed to earn money through dishonest means. Games in casinos or on the stock exchange have never brought such astronomical profits as those promised by online scammers. Such offers should be kept at a distance, think critically, and draw conclusions to avoid losing your funds.
Risks of Using Financial Platforms
The most common risk on a financial platform is financial. This results in unforeseen losses, reduced profitability, a decline in profits, and a complete loss of investment - all of which arise under conditions of financial uncertainty.
Investing in a financial platform can expose you to a range of risks:
- investment risk;
- interest rate risk;
- currency risk, dependent on exchange rates;
- commodity risk;
- inflationary risk.
Several types of financial risks are identified – operational, legal, credit, market, liquidity.
Signs of a Financial Scam
Financial scammers are criminals with extensive experience. Their goal is – enrichment, but there are some signs that can help, albeit not immediately, to identify scammers:
- they contact you first;
- the main goal is to deprive you of funds;
- they offer astronomical profits with dubious companies;
- they spread links with profitable and time-limited opportunities, forcing the victim to react quickly without having time to critically weigh everything;
- they try to entice you with quick astronomical profits.
These schemes have long been known on the internet, but scammers often find victims, playing on their emotions, provoking them to invest money and make quick earnings.
Protection from Online Fraud
Protection from online fraud can be provided by several factors. You should be attentive when communicating over the phone, not disclose personal data, private information, passwords, or card numbers. Regularly change passwords in social networks, banking, update email software, configure gadgets to automatically filter out spam. Be attentive, cautious, do not panic, and do not make hasty decisions. These rules will help protect against internet fraudsters.