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The most well-known types of scams on the internet are frauds on financial platforms. These platforms include all sites where cryptocurrency trading is offered.
Scams on Financial Platforms
The modern world of cryptocurrencies is teeming with various coins invented by many people, including scammers, who promise astronomical incomes, high profits, and guarantees that their currency will become the most popular. For this, it is necessary to deposit money - this is one way of scamming on financial platforms. You should also pay attention to your crypto wallets with different NFTs that promise fantastic profits if you interact with them. Such NFTs are not recommended to use - it would be a common scammer's trap, better to ignore such gifts and not take unknown cryptocurrency.
Very often, scammers write personal messages inviting you to visit a financial platform for investing money or making untold earnings. They work under a scheme such as:
- pretending to be site administrators;
- insisting on buying or transferring money;
- also sending spam links.
It should be remembered that this is all deception.
How to Protect Yourself from Financial Scammers.
It will be easier to preserve savings or income if you follow a few well-known rules:
- you should be vigilant,
- always verify incoming information,
- do not use suspicious links,
- do not download applications from unverified sources,
- use strong passwords and do not store them in an accessible place,
- ensure two-factor authentication (especially for email or banking),
- keep personal bank card details, passwords, pin codes secret;
- it would not hurt to use an additional card for online purchases or financial transactions.
Fraud on Financial Services
To lure a victim to a financial service, scammers use all their knowledge to create fake websites of well-known companies, sending out links, hoping that someone will definitely fall for it. Upon appearing on the financial server, the scammer will pretend to be either a broker or a financial advisor who knows everything and will help make investments. His task is to extort as much money as possible, promising the victim high returns in a short period.
In doing so, scammers use well-known platforms, sending emails or messages, supposedly from official sites and real financial institutions, to obtain personal information and rob the future victim.
Loan fraud is also widespread now, scammers use fake documents in a bank or microfinance organization to get a loan. Having carried out their machinations, scammers disappear and do not pay the debts.
Scam artists also do not disdain to engage in fraud regarding insurance payments, first reporting insurance cases to receive a payout from the insurance company.
Risks of Using Financial Platforms
Having digital financial assets makes it clear that this is one of the risky areas on a financial platform. Using cryptocurrency, you can never calculate your earnings, dividends, income. The exchange rate of cryptocurrency depends on various factors on the exchange, and having the currency, it is impossible to predict its value in advance and calculate your income - this is also a risk.
Also risky will be the purchase of unknown goods for further resale. Here too there is no guarantee that the product will sell widely, be popular, and bring income.
Using trades or trades on exchanges, there is always a risk of losing profit or not earning it at all and even being left without investments. Several types of financial risks are distinguished - these are:
- credit;
- operational;
- legal
- market and liquidity.
Signs of Financial Scam
To understand the signs of a financial scam, one must understand that a scam is gaining control over others' funds without providing a certain level of financial assurance. Such operations are carried out with initially malicious intent, manipulation of information, abuse, and conducting knowingly illegal financial operations.
The very first sign to determine that you have encountered a financial scammer is that an unfamiliar person contacted you directly and only talks about money, investments, deposits, loans, installments, and investments.
Financial pyramids are also scams, luring you in, the scammer hopes for profit from its participants and members of the pyramidal community. Such pyramids can work for a long time and then, all of a sudden, just collapse, and the scammers, taking all the investors' money, disappear in an unknown direction.
Protection from Online Fraud.
To protect yourself from online scammers, you need to take precautions yourself. It is necessary to understand that besides yourself, no one can protect you from online fraud. Therefore, you should be cautious with unknown interlocutors and not make hasty decisions. Every decision related to finances should be carefully thought out, weighed, and calculated.