Having financial savings, a person always wants to multiply them without making additional efforts. Various methods of passive income include investments and deposits. Most banks offer deposits, which usually have a low-interest rate. Therefore, alongside bank deposits, online deposits are developing, where fraudsters love to operate with offers of high-yield deposits.
High-Yield Deposits
When approaching a bank, a client wants to hedge against possible inflation and, of course, earn more money. A deposit is more likely to serve for the preservation of funds and minimal profit. If it is arranged in a bank, then it is:
- insured by the state, and if the bank fails or loses its license, the return of deposits is guaranteed;
- knowing the amount of the deposit in advance, they calculate the profit.
Those who dream of earning more pay attention to online advertisements for high-yield deposits. In most cases, such deposits are fraudulent schemes, and by agreeing to such deposits, depositors may lose their money instead of multiplying it. The scheme is that fraudsters offer to invest money on the platforms of their online organizations. The scam begins with fraudsters sending phishing and advertising messages offering high-interest rates on deposits.
By entering into such an agreement, the depositor risks being left without a deposit, as fraudsters only lure clients, collecting a certain amount of money from them and not returning it, forging fake agreements that do not guarantee the return of the deposit and profit.
Deposit Fraud
When arranging a deposit, the client hopes to be able to terminate the agreement at any time, losing interest in the process. Therefore, not only fraudsters from financial online organizations but also in banks operate with such a scheme as arranging a policy - this is called accumulation insurance. What does it mean? Besides the initial contribution, the depositor is regularly obliged to make contributions, for example, every month or quarter. If not done, the insurer has the right to terminate the agreement, and the deposit is not returned.
To lure a victim into such a scheme, a bank employee:
- does not allow thoroughly studying the terms of the agreement;
- rushes the signing, saying it is formalities not worth paying attention to;
- a large number of documents are immediately issued for signing such a high-yield deposit.
Such processes mislead the depositor and are called misselling. By imposing such schemes and not allowing a person to reconsider, banks and financial organizations dictate their rules, deceiving depositors, which does not allow them to withdraw and retrieve their deposits at any moment by refusing profit interests.
Financial Schemes
Fraudsters actively develop and invent various schemes and projects that allow them to deceive depositors. Implementing these investment projects, fraudsters thereby attract funds for investment activities.
Both individuals and large companies are attracted, being offered high returns in a short period. It is enough to make deposits in certain projects. In these projects, allegedly, interest will be accrued on investments, and the client is also offered to invite additional people to increase their income, which will allow them to receive additional profit depending on the deposit of the referred person.
Several main types of financial fraud schemes are identified:
- network marketing;
- Ponzi scheme and pyramid scheme;
- digital crimes;
- phishing;
- online loans;
- online games;
- online commission shops;
- provision of tourist services;
- consumer cooperatives;
- investment projects;
- debt settlement;
- trading on cryptocurrency exchanges;
- asset revaluation;
- microfinance organizations issuing loans;
- crowdfunding and crowdfunding;
- fundraising funds;
- partnership agreements.
These are the main directions in which fraudsters operate, luring victims on social networks
Savings Protection
There are special programs providing for the protection of clients' savings:
- If deposits go negative, then according to the legislation, after the end of the deposit agreement, the client must receive an amount not less than all contributions.
- Fixing a constant investment income using a long-term savings program, at the end of the term, all investments are preliminarily fixed as investment income for the period specified in the agreement.
- Providing a state guarantee system, this method of protection works in case the company lacks its own funds to fulfill the agreed obligations under the savings agreement.
- Inheritance possibility, if the participant of the agreement dies, their deposits may be inherited by relatives.
To protect your savings, trust them to proven financial organizations or banks that have been operating in the financial services market for years.