There are lots of memes centered on obvious scenarios of people falling victim to investment scams.
The truth is we all can still fall for such tricks if we are not extra careful.
Most investment scams use the same basic principles.
The set person who is always likable,friendly and professional promises great profit, assurance of no risk and has this assertion of urgency and secrecy.
When making money, the idea of having even more money is always welcome;
“We have different financial goals and doubling up our money will help in achieving them.”
These prevalent thoughts in the human mind makes it easier for a scammer.
There are different types of investment scams. Scammers join hobbyist groups and religious groups, or trade on ethnic similarities because humans tend to listen to people with whom they have something in common. They also pose as sales agents or unlicensed brokers approaching you with financial advice or an investment opportunity. This agent might sell fake insurance policies.Or, worse, you could walk into this den personally to seek advice as they are well-positioned.
The Ponzi scheme is also a type of scam. The Ponzi money-shifting scheme consists of paying initial investors with the funds provided by later investors. In the early 2000s, Harry Markopolos, an obscure securities professional gave warnings to the security and exchange commission about this medium perpetrated by Bernie Madoff.
People fall victim to internet scams too. This includes E-mail offers and spurious web sites promoting investment opportunities in nonexistent companies or products.
Worst still, Scammers also see seniors as targets. Since seniors worry about how their retirement savings will support them, they are eager to believe the scammer who dispels these fears with his sound advice and exciting opportunities, presenting insurance fraud and unsuitable investments.
It is glaring, everyone is a target and this is the reason why forensic investigators or financial forensics is a fast-rising occupation.
Forensic is a research carried out to investigate crimes. In this case, these persons are trained beyond the shallow level of computing and networking functions to know what is underneath the covers. They run through people’s investment to investigate or trace their money. They know networking, Law and criminal investigation and also, a sound analytical mind.
Forensic services are becoming more available as the rise of cybercrimes increases.
Without a doubt, a Forensic service with their knots neatly tied helps in cases where there is a breach.
Ever lost your money through investment scams?