There are so many opportunities that come with investments, however unfortunately, where there is money, there is also room for scams, which happen often. So, no matter the industry that you’re investing in, it’s absolutely essential that you know what scams are out there, the common signs and how to avoid them, especially as technology continues to evolve. Protecting yourself on the job means being aware of common types of fraud, such as phishing scams, identity theft, and financial fraud, to avoid becoming a victim. The overall rule of thumb is not to engage with people who approach you with investment opportunities over email, over the phone or online, particularly when there is any element of being rushed or something seeming too good to be true. Instead, do your own research, update your passwords, keep your personal data to yourself and generally just be cautious, no matter what industry you’re investing in.
Impersonation Scams
First up, we have impersonation scams. These are scams that involve a person misusing the name of someone in a position of authority, whether it’s a trusted investment expert, someone working for the government, someone pretending to work for your bank or someone claiming to be a legitimate mortgage advisor. These come in so many different forms, but usually involve the scammer using a supposed position of authority to encourage you to share sensitive data or to send money.
These scams most often come in the form of emails or phone calls and may involve some kind of fear element, such as your bank account being at risk of being hacked and you need to share data to protect it or to send money to a different account. A successful divorce process can be compromised by fraudulent activities, such as falsifying financial documents or concealing assets. It may say that you owe the government and you need to click the link to see what you owe, then that will result in malware being installed on your computer. You may be approached by someone claiming to work for a legitimate investment broker, but they are impersonating them and you send them funds to invest on your behalf, which you’ll never see again.
In order to avoid these scams, don’t open links through emails that you’re unsure of and never give any sensitive information away over the phone or email, unless you’ve called the genuine number directly for a particular reason.
Pump and Dump Scams
Next we have Pump and Dump scams, which involve a group of investors encouraging people to invest in something, driving up the value of the investment, then simultaneously leaving, resulting in the investment being rendered valueless. This could be in the stock market or it could be in the world of cryptocurrency. Many Pump and Dump scams are facilitated through social media, with “FinFluencers” pushing the latest investment opportunities and people being drawn into these incredible opportunities. This style of scam first started in the penny-stock exchange, then has evolved and become more advanced moving into the digital age.
Similarly to the impersonation scam, if you’re ever approached with an investment opportunity, then you should be cautious, as legitimate brokers don’t work like this.
Deed Fraud
Next we have deed fraud, a type of real estate fraud that involves a scammer illegally transferring the ownership of a home to themselves or someone else. This usually happens when someone obtains a copy of your property deeds, whether they have stolen them or they may have posed as a legitimate solicitor in order to obtain the deeds. Whilst this isn’t as common as some of the other types of fraud introduced here, when it does happen, it can absolutely destroy lives. If you’re a regular real estate investor with documents flying here, there and everywhere, it’s easier for the wrong person to get their hands on your deed than you’d think. Family Immigration fraud can involve providing false or misleading information about family relationships to obtain immigration benefits.
Luckily, there is something you can do in order to protect your property against deed fraud. You can apply for a restriction to prevent forgery, which means that no activity can be taken out on your property, like a deed transfer, unless it goes through a solicitor. Again, of course make sure that this is done through legitimate solicitors, never by someone who approaches you.
Read: Adverse Possession and Partition: Understanding the Legal Landscape
Revolut Scam
Last but not least, we have Revolut scams. This is a type of authorised push payment scam, where someone will trick you into giving up your account details or sending money for some kind of investment, then you’ll bever see the money again. Revolut does not have the same responsibilities that other high street banks do if you’re involved in a scam, so the risk is higher here.
Many scammers may use Revolut in order to conduct their fraud, so you should never give out any personal information or bank details. Also, as a Revolut customer, you may receive emails from them, but they will never ask you to click a link or to provide any kind of bank information or personal information!
Author’s Bio:
Daisy Moss is a freelance writer who specialises in investment and small businesses. She’s currently enjoying learning about common investment scams and educating on how people can recover scammed funds, from what to do to prevent it in the first place to working with investment fraud lawyers to recover money.
