Financial scams have been a prominent tool for criminals looking to steal money from unsuspecting citizens. If you have never been targeted for scams before, you likely will have limited knowledge as to what you should be looking out for. Online financial scams have evolved to frightening levels, meaning now more than ever, they are hard to spot and even harder to trace once the money has been sent. In this blog post, we will discuss the types of financial scams that are circulating online platforms currently, and what red flags you should be aware of if you do not know how to spot the signs. Take a look at the following suggestions:

Types of scams on the rise

Ai celebrity ads

The elevation of ai has highlighted dangerous uses for advanced technology. The celebrities we know and love are now being used for their faces and voices, and being programmed to target people through online platforms to convince fans to send money. Famous faces such as Elon Musk can be seen seemingly suggesting forex trading scam investment opportunities. Unfortunately, a lot of fans have fallen for the schemes, and their money has been lost to these cunning organisations.

Romance Scams

Romance scams can be difficult to uncover. Only when it is too late that the victims of this method often realise what has happened to them exactly. Romance scams work through the creation of fake profiles reaching out to singletons looking for love Through dating websites and also general social media, the scammers pose as their fake profiles, finding people who are interested in getting to know their fake personas. Building their trust, they gauge the attention of their targeted people and quickly make them feel special enough to be their love interest. Romance scams quickly take a turn when the scammers convince the person they are talking to either send them money for an investment scheme they are profiting from or to even send a large sum of money to help them with an emergency. The heartstrings are truly played during these types of scams, and they can be extremely easy to fall for without caution being taken.

Ponzi Schemes

Ponzi schemes have been prevalent for some time, but with the introduction of cryptocurrency, there are now Ponzi schemes that focus on the stealing of digital currencies. Similar to pyramid schemes, they come in the form of an opportunity to make a lot of money within a short amount of time, with the people at the top of the chain earning much more than the people at the bottom. Especially the more people join, the more the people at the top earn, typically the cunning scammers who have fabricated this false opportunity.

Red flags to watch out for

High promises with little risk

One of the most prominent things to look out for when spotting an online financial scam is the promise of high returns with little risk for the investment of your choice. Investing is always risky no matter what you decide to do, and there is always the possibility that you will lose your initial input. Scammers tend to make investing look lucrative and risk-free for the fake investment scheme they present to you. Watch out for these as they can come in the form of property scams, NFT scams, and more!

High pressure

Scammers will pressure you to invest a short amount of time. From when you meet them to when they introduce the concept of the investment, you will be made to feel like the offer is for a limited time. Never invest with someone who makes you feel pressured and forced to send your money into something you do not trust.