5 Types of Online Scams

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The scam is not limited to banking transactions and payments only. There are different types of scams that are used to lure traders and investors into traps. If you are into forex or bitcoin exchange then you need to be aware of 5 types of scams that are circulating in the market right now. Different types of scams are conducted in different ways so most of the time the victims don’t realize the situation until it is too late. Stay up to date about these common types of scams that can cost you money and fortune.

Technical Scams

Technically speaking, technical scams are mostly used in the front office of the cryptocurrency exchange. They are fraudulent activities where third party operators try to manipulate and cause glitches to either disrupt the blockchain or the execution of the trade. All these different issues can cause big losses in real time. Most of these vendors have names similar to big exchanges that fool the traders. The usual scenario goes like this, after the trade has completed the vendor issues a wrong trade order causing a malfunction and loss of funds. These types of scam are not new, they have been around since the early days of Bitcoin trading. They affect both male and female traders but usually affect the male traders a lot more.

Investor Scams

Investors do not necessarily intend to make huge profits out of their investments. In fact they only want to become successful money earners. When you start trading, you may realize the importance of investing some money at a specific time in the future. The investors who used to invest in stocks or Forex came across new investment opportunity that lured them in trading. If you are looking for a more secure platform then Bitcoin Investment Trust is the one for you. By investing in this investment trust, you can earn and potentially make money by bitcoin transactions. This company has different strategies in order to get more investors into their projects. Don’t just join any trading platform because it may lead you to risk of losing your money.

Investment Scams

This is the biggest scam of them all. These investment scams are used for taking the people’s money. They are basically scammers who have a complex website where you will see the logo of the company. But after visiting the website you will notice that there are a lot of technicalities and it can get a bit complicated. It is safe to say that it is definitely too complex for the average person. But, these scammers make it very simple for you to register on their website and invest your money. Once you do that, it becomes pretty easy for them to withdraw your money from your account. This kind of scammer takes the information from people about his investment company and is ready to deceive them.

Social Media Scams

A couple of years back Facebook was the top social media network. Then after that the users began to follow celebrities and professional pages. The most common forms of social media scams are:

Listing non-existent business accounts with fake social media profiles.

Scamming people by creating fake profiles and sending your photos to them.

Churning people by creating fake profiles and adding you in their list of contacts and sending you photos and messages.

On-line services services

Just like the social media scam, there are also a couple of on-line services that are very lucrative. These services are very dangerous as they can take the investors’ money with the promise of attracting a bigger one, but ultimately the investors are left empty handed.

Trader Scams

The scam works in the most basic way. The fraudster gets victims by sending emails to them about trading in bitcoin or forex. The email contains personal information of the fraudster that victim had no access to before the scam is reported. People who respond are then directed to a site that poses as a legitimate bitcoin exchange or a forex site. Once the victim gives his money the scammer requests for another part of the investment. When you are being lured to a website try and find out who owns the site. If it is a forgery or copy of another legitimate site, the site you are looking at is most likely part of the fraudster’s scam. Check for the source code of the site.