There are many ways to spot an investment scam. Many of these schemes will use social media to contact you and ask you to download their stock trading applications. Once you have invested money, the scammers will make excuses for why the platform has closed, and they won’t reply to your requests for help. Even worse, they may use your friends’ money to promote their own stocks, and then disappear when the market price plunges. This is an old trick that works for scammers, and it’s still effective!
The most common investment scam is a stock promotion email. This usually comes from an e-mail address claiming to have inside information about a company. You open the email and it sounds like you are receiving tips to invest in that company. Once you purchase the stock, the scammers will sell it to you for a huge profit – but you don’t own anything. Instead, you’ll end up owning worthless stock.
Another common investment scam is the advance fee scam. The fraudster will tell you that the stock is on the rise and that you should buy it. But this is a scam, and the company will never increase the price. You’ll end up with shares that are worth less than what you paid for them. So, if you are thinking about investing in the stock market, make sure you’re not a victim of this scam.