Each year, millions of unsuspecting Americans fall victim to investment scams. According to The Federal Trade Commission, 25 million US citizens find themselves mixed up in consumer fraud each year. Therefore, when you’re investing your money, it’s vital that you’re vigilant and do all you can to protect yourself from being scammed. Investment scams are constantly evolving and these are the ones that are currently sweeping the nation.
Deals too good to be true
Despite the well-known saying that if something looks too good to be true then it most likely is, con artists are still offering astounding deals which thousands are investing in. Most recently, investors were promised a 130% return for investing $10 in bitcoin and a 300% return within three hours if they bought $1,500 worth of bitcoin via Wedgecoin.com. Payouts were made to those who invested just $10, but the trick was to hook investors and make them part with the higher sum. Unsurprisingly, those that did invest $1,500 saw no return and their cash was lost. Wedgecoin.com was also found to be a fake site which stated it was based in West Michigan but listed an address in Holland. Therefore, always cross check website information and if a deal sounds as good as this one, be cautious before parting with your cash.
Celebrity endorsements are all the rage this year and most businesses know that teaming up with a well known and respected public figure will encourage individuals to spend their cash. However, fraudsters are using this to their advantage. First reported back in February, con artists have been creating fake Twitter accounts to impersonate celebrities and technologists, including Elon Musk and John McAfee. The tweets posted give direct links to fake cryptocurrency deals and encourage users to part with their cash. Bots are then used to post positive comments on the original tweet and to retweet the fraudulent deal. You should always be wary of deals posted and shared on social media and it’s advisable to run checks on any links you are referred to. Ensure the public figures you are following on Twitter are genuine by looking out for the verified symbol next to their Twitter handle and look through their following and followers list, too.
The Securities and Exchange Commission has taken drastic action to protect technology investors from losing their hard earned cash by setting up HoweyCoins. On the face of it, HoweyCoins is a cryptocurrency site offering coins to investors, however, the website is fake and has been created to show investors what to look out for when you’re considering ploughing your cash into a new investment opportunity. It’s not just fake cryptocurrency websites that are cropping up, either. Fake consumer reports which consumers refer to when they want to find reviews on the products they intend on buying are also being targeted, so when you’re next looking online for a product review or to find the best bitcoin deal, ensure you check the legitimacy of the website before you splash your cash.
Cryptocurrency scams are big news this year, so you need to be on your guard when investing. Be cautious of deals which look too good to be true as more often than not they are and be mindful of fake celebrity endorsements which aim to lure you in. Thankfully, the government is working hard to show investors what to look out for when dealing with cryptocurrency and is helping individuals learn how to spot fake websites.