The internet has changed the way the world works, and that applies to financial investments too. The world wide web has not only opened up new investment opportunities, but it has also created new routes to market, especially for smaller or first-time investors, or for people who traditionally use conventional stockbrokers.
Whilst those new developments are very welcome, every upside has a downside. Sadly there are many sham investment companies set up with the express intention of defrauding you should you choose to invest online. So what are the different types of online investment fraud, and what are the best ways to protect yourself from scams?
The different types of online scams are as varied, imaginative, and comprehensive as the internet itself. A quick Google search will reveal the scams in all their miserable glory, including:
But forewarned is forearmed, as they say. With a little care and thought, you can avoid the most common online scams.
There are a number of easy steps you can take to protect yourself from the majority of online scams. Here are some common-sense suggestions:
Never, ever make investments after a few glasses of wine or bottles of beer: your normal good judgment may be impaired!
Some industries and market sectors seem to lend themselves to ripping people off. If you want to protect yourself from online scams, a good starting point is to be aware of which sectors are renowned for being high risk.
At the highest level, the mining, real estate, construction, oil/gas, and banking sectors have all proved to be highly susceptible to online fraud. And at an individual level, the E-Commerce sector continues to be a minefield at times.
Drilling down into the financial sector in specific, regrettably for any potential online investors, there are four investment areas that are especially open to fraud:
However, the good news is that the majority of companies operating in these sectors are genuine, and if you do fall victim to a scam, there are some excellent chargeback companies that can often help to recoup your losses.
The old mantra, “prevention is better than cure,” is the best possible advice for protection against fraud. And the next best piece of advice is to walk away if you have any doubts or worries. There are always plenty of other investment opportunities for you, especially online.
Before you even think of handing over any money and investing online, you should run through a simple checklist. Yes, this will take a little effort on your part, but if it prevents you from making a bad investment and being ripped off, it will be time well spent.
For the best scam protection when investing money online, these are the sort of considerations to bear in mind:
How are financial transactions handled, and how safe are they? Remember that certain banking methods are safer, and have more back-ups and checks for protection against fraud.
Making financial investments online is quick, easy, convenient… and very exciting! But that same convenience means you need to be doubly careful in order to protect yourself from online scams.
Most people are rightly cautious and sensible when it comes to making real-life, face to face investment decisions. But there can be a tendency for that usual caution, reason, and common sense to go out of the window when investing online. Here are some of the questions you need to ask yourself before making a final decision:
Online investments are no different from traditional investment methods. You wouldn’t put money into a brick and mortar company without checking it out first. So make sure you do the same with any potential online investment.
There’s no such thing as a 100%, sure-fire, cast-iron investment, so don’t get taken in by the hype. If something sounds too good to be true, it usually is.
Some companies are exceptionally good at making it nigh on impossible for you to withdraw any profits. Better to check ahead of time than to be wise after the event.
Thoroughly read and reread every contract. It’s all too easy to be caught out by mean or underhand conditions buried in the small print. Get someone else to check the contract for you, and don’t be afraid to question the company about any doubts you may have.
Following this advice is the best way of protecting yourself from fraud. Every single investment decision comes with an element of risk, and online investments are no different. But by doing your homework, you can greatly reduce or even eliminate the chances of being ripped off.
The fund recovery process can be a lengthy one and requires perseverance. Therefore it is vital that our clients are ready for it and trust us every step of the way. So if for any reason you are doubtful, you can ask for a full refund within the first 14 business days of the process.**Read Terms & Conditions
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