Guarding Against Financial Fraud And Scam
Many people have fallen victim of financial scam and fraud than we can ever imagine. Just a few days back, a friend of mine narrated an awful experience she had. Someone chatted her up to discuss with her what looked like a business proposition. In the terms of the business, if she invests into it, the money will be doubled and paid back to her in hours. I mean, how can someone even fall for something as cheap as this? Well, she saw it as good, or rather, she allowed them to prey on her mind and leveraged on her greed. She brought out money and invested in the business and that was it. Till now, the person has blocked access that she cannot get to them, and that was how she lost the money to scam.
As the world evolves, technology also follows suit, and many other things also evolve at an incredible rate. This also includes the tactics and tools that these scammers perpetrate their bad actions with. This is the reason one has to be extra cautious when dealing financially with anyone or when investing. The truth is that there are lots of forms that bad actors can perform their scammy deals on unsuspecting victims. These can come in form of impersonation, ponzi schemes, rugpull (in the case of crypto), phishing frauds, investment scams, etc. There are ways by which one can tell, to a considerably large accuracy, if a financial deal is scammy, so as to stay cautious.
Firstly: Any investment opportunity that will promise you a return that looks outrageous, it should tell you that there may be something scammy to it. just like the case of my friend, she was promised an unreasonable and unrealistic ROI and she went ahead and invested, and lost her money. If someone promises you an overinflated returns on your investment, the first question you should ask yourself is where will the person make the money from?
For someone to tell you that you will make 100% of your investment in hours, is that even sustainable? Why most people fall for this kind of scam is because of greed and they want to make quick money in a short time. But if you are patient with investment, you will not have to invest in these kind of scammy deals.
Another thing to look out for is the online presence, team members, and antecedents of the project you want to invest in. A seemingly large company that wants you to invest in them but they do not have a functional website or contact details or even any known team member is already a red flag. Okay if the investment hits south, who will you hold responsible? On the same hand, if any of the team members is known or remarked for fraud, then you should beware of investing into such business. When you are undertaking your research about a potential investment opportunity, you should observe their web presence too, the contact details there, etc.
More so: Some fake or scammy projects are modelled to look like another project just to deceive the unsuspecting victim. If you notice spelling errors in the url or weblink, or any irregularity, then you should tread with caution. This kind of scam is also obtainable in the crypto world. This is why it is advisable to bookmark the crypto sites (exchanges, staking sites, etc) that you frequently visit and do not click on any random site that you see.
This leads to the fact that we should also be cautious of clicking links, because some of the links might not be genuine and some may be phishing which can create an unauthorized access to your assets. More so, you should know the kind of information you give out via proxy. Do not divulge anything relating to your private keys, pass phrase, password, mnemonics, and other sensitive details via proxy, so as not to grant unauthorized access to some bad actors to perpetrate bad actions on your assets.
While observing all these, always remember that you need to keep going for more knowledge. The more you know about the potential ways that you can be attacked, the more you guard against it and the less likely you are to be attacked. A lot of people that have been financially scammed or defrauded was because of sheer ignorance of the devices of bad actors. But when you keep yourself abreast with more knowledge on relevant measures to prevent financial scams and frauds, the safer you become in the financial space.
Thanks for reading
Peace on y'all
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