Widespread Scams

There are an almost endless number of online investment scams, but here is an alphabetical list of the most common, which are responsible for the majority of internet fraud cases, followed by some tips on how to spot and avoid them.

How to Spot a Scam

  • You were “cold called” (i.e., contacted out of the blue) by a total stranger
  • You’re promised a specific profit by a specific date
  • Pressure is being applied by imposing deadlines
  • You’re told that this is a special offer meant just for you
  • The company making the offer is registered in a small, underpopulated country you can’t easily find on a map – the phone number you’re called from doesn’t prove anything in the age of internet telephony and online commerce

How to Avoid Being Scammed

  • Never accept any unsolicited offer without investigating it thoroughly
  • Be skeptical − if it sounds too good to be true it probably is
  • Do not correspond in writing, hang up if they call back and never provide or confirm any personal information
  • Check to see if the offer comes from a firm that appears on a warning list published by your country’s financial or investment regulator or is owned by another company that is
  • Consult an independent investment specialist before making any commitment