Types of Scams

Types of Scams

Binary Options Scams

These days, binary options investments which can also be referred to as cash-or-nothing investments typically pay off nothing at all or a fixed monetary amount. Unfortunately, much of the binary trading market is fraudulent & unregulated, meaning that, unbeknownst to investors, it’s impossible to make a profit and there is zero compensation at the end of the road. Furthermore, there are binary options’ brokers that tell investors their money goes into a segregated bank account when in reality no such account exists, and the money goes into the brokers’ accounts which are normally far away in a tax haven country. Those who wish to withdraw their money always end up running into a stone wall, and unfortunately discover that it is gone for good.

Forex Trading Scams

Foreign Exchange (Forex, FX, or currency market) trading has become a popular and attractive way to invest money in the market. The Forex market determines foreign exchange rates for every currency. It includes all aspects of buying, selling and exchanging currencies at current or determined prices.

Fraudulent Forex agencies use people’s lack of experience in online trading and promise them a high profit with very low or non-existent risk (risk free trading). As a result, people are tempted to give away their money without realizing that their chances of gaining the profits that they were promised are zero. All this together with the bulldozer-like attitude of Forex trading brokers makes these types of scams one of the most prolific financial frauds in recent history.

Cryptocurrency Scams

In 2018, Cryptocurrency scams totaled $1.7 billion in loses for people who were enticed to invest in in these types of online currencies. The unparalleled success of Bitcoin resulted in the formation of other cryptocurrencies and crypto wallets, which naturally caused people to invest in online coins. The most common Cryptocurrency scam is a Ponzi scheme – “old” investors in Cryptocurrency get money when new investors purchase virtual currencies. In essence, there is no profit whatsoever, money gets moved around between investors and the profits are close to none.

Other Types of Online Scams

Aside from Forex, Binary Options, and Cryptocurrency scams, there are other common types of online frauds that target anyone they can; online dating/romance scams, for example, are very common and typically targets women around the world; many women have fallen victim to men who depicted themselves as single and willing to be in a relationship.

Once they got their victims’ comfortable and trusting, the men who performed the scams asked large sums of money for supposed emergencies, cheating women out of thousands of dollars. The widespread fraud does not usually result in lawsuits due to the victims feel ashamed that they have been duped and left heartbroken by their scammers.