Online Investment Scam

Been Scammed? Let’s Investigate The Case

Millions of dollars are lost to financial scams every year, and this number is unfortunately rising. If you were one of the many people caught up in a financial scam, you're certainly not alone. And while most scam victims think they can't do anything to get their money back, that is not the case.

We at MoneyBackPro work tirelessly to investigate financial scam cases and gather all the information a client would need to get their money back. Our expert investigators have years of experience helping those who have fallen for financial scams, and they can help you too.

We have the know-how to investigate the cases we take on to deliver the information our clients need, while also trying to prevent similar cases in the future. We’re pleased to provide a range of helpful resources and guides to help you avoid getting entangled in a scam in the future.

Commons Types of Financial and Online Scams

More scams are emerging virtually every day, so staying vigilant, and remaining safe online, is vital now more than ever before. Here are some of the most common cons and scams in circulation right now to be aware of.

CFD Scams

CFD trading used to be the exclusive province of experienced, high-end traders; now, however, as the markets have become more accessible, many more people are involved in trading these complex instruments.

CFD stands for ‘contract for the difference.’ Trading in CFDs involves the trader taking out a contract speculating on the difference in the valuation of an asset between the time this contract was taken out and its end date. In a nutshell, if the price of the stock rises, the buyer pays the seller. If it falls, the seller pays the buyer.

CFD scams are on the rise, largely because con artists can take the opportunity, with this type of investment, to prey on those new to the markets and who therefore aren’t fully aware of what a risky proposition - and the large amounts of money - that can be lost in a CFD trade. Scammers make the most of the fact that CFDs can be leveraged, meaning that investors can bet more money than they put down.

Therefore, in CFD scams, it’s common practice for an unscrupulous broker to pressure the investor into taking out leveraged positions, essentially making extremely risky investments that they don’t necessarily understand the financial consequences of.

Ponzi Schemes

Ponzi scheme scams have been around for a long time, but they constantly evolve, making it difficult to spot some of the most recent ones. A Ponzi scheme will typically lure initial investors into putting money into a fake enterprise and will even make some small early payouts to convince these investors that everything’s legit. Right now, Ponzi schemes masquerading as opportunities to invest in a Digital Currency enterprise are widespread.

However, the only money coming into the fund is from new investors. Typically, the scammers will pile the pressure on for investors to make higher-value investments with more frequency until suspicions are raised and the money coming into the scheme dries up. At this point, the fake enterprise, along with its website, will disappear - along with the scammers and all the money remaining in the pot.

Social Media Scams

These scams can take a variety of forms. You may see a post on your feed informing you that you’ve won a gift card or other prize. However, if you enter your personal and/or banking details, as the link will ask you to do in order to be sent your winnings, these details will be used by the scammers to commit identity fraud or to raid your account.

Another common scam that uses various social media platforms is the Gossip Scam. In this case, an ad will appear that hints at some fascinating celebrity gossip - and all you need to do to read the full juicy story is click on the link. If you do so, you’ll be taken to a page asking that you download the latest version of Adobe Flash Player to read the article….doing this, though, will download malware onto your device, which the scammers will use to raid all your personal information and gain access to your credit cards, bank, and other accounts.

Stay vigilant, too, regarding the Healthcare Scam that’s also doing the rounds on Facebook and other social platforms. You may be sent a message or see an ad on your feed from a seemingly legit-looking company offering services such as replacing a lost social security card - these ads may even feature the Medicare logo and other details that make them seem entirely credible. However, these companies will charge a significant fee if you try to use their services - when Social Security will, in fact, replace lost cards or issue new ones that include your new married name, for example, free of charge.

Charity Scams

These frauds take advantage of people’s good nature and desire to make a positive difference. You may receive a cold call, an unsolicited email, or see an ad on the internet that seems to be on behalf of a genuine charity or similar organization.

Many people fall foul of these scams and only discover at a later date that they’ve donated money to a completely fabricated concern. These types of scams are particularly prevalent in the holiday season, so stay extra vigilant during these periods.

Warning signs of a charity scam include being pressured to make a donation immediately and/or a request to make your donation by cash, gift card, or wire transfer - these are scammers' favored methods of receiving payment. Also, watch out for a message you receive thanking you for a previous donation that you don’t recall making. This is a commonly used trick to con unsuspecting victims into making further donations.