Over the last few sections of this blog, we’ve been discussing the all important topic of investment scams. Ever since the advent of the internet, anonymity has allowed con artists and scammers to have an unprecedented level of access to targeting new and susceptible investors, luring them into scams and schemes that are designed to drain their wallet and offer them little in return. Obviously, if you’re going to be involved in investing and trading online, you need to be aware of these scams and know how to spot them and avoid them.
Important points to avoid scams
Hopefully, the last few posts have given you a good idea of the kinds of schemes and tricks that are most often seen. Let’s review some of the most important points of avoiding internet scam artists.
First and foremost, these aren’t new tricks. For the most part, the schemes being perpetrated on the internet are the same old stunts that con artists have been using for decades. While the details might have been updated to take advantage of technology, the fundamental essence of the schemes hasn’t changed. This can make them easier to spot if you know what to look for.
Online bulletin boards can be a source of valuable information, but you have to be very sceptical about who to trust. It is very easy to register false accounts for use on online message boards, and this is one of the easiest ways to lure many people into a pump and dump scheme with a fake tip.
Online Investment Related Newsletters
If you subscribe to online investment-related newsletters, please be aware that the majority of them are written by people who are being paid to promote a product or service. While this can still be useful, you should be sceptical of any direct tips or advice that come from such sources.
Learn to recognize spam for what it is. Delete all suspicious mail as a matter of habit, and always check the sender’s address for validity.
Lastly, if you do encounter a scam online, be sure to contact the proper authorities. The more care we take to report illegal activity to the SEC, the sooner we can put an end to online investment scams for good.
Well, that about does it for the topic of investment scams. See you next time, when we’ll move along to another topic of interest. Until then, happy trading!
Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 – 2008
{ 2 comments… read them below or add one }
thanks for that Sean, yes there are some very unsavoury people out there and thye try to scam you with out having to work hard for they get.
richard
Hi Sean,
Thanks for the round up of the scams on the internet that we have to look out for. There are so many scams online that it really only pays to take advice from people you know.