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HOW TO DETECT A SCAM OR FRAUD SCHEME.

 

INTRODUCTION.

Fraud is very common whenever there is money to be made or business is being transacted, especially if one is not very careful or wary of the dubious methods used by scammers or fraudsters. This is more common with regards to online businesses where most transactions are done online or remotely. It is the purpose of this article to reveal some of the dubious means used by these tricksters in such a methodical and incisive methods that will save you from anguish. Discussed below are some of the signs you should be on the look out for in order to avoid being cheated of your hard earned money.

(1). OWNERS OF BUSINESSES MUST BE IDENTIFIED.

It is common knowledge that genuine businesses have owners who can be legally held accountable or referred to in all kinds of transactions. When the physical owners are known and identified, it becomes easy to refer to them whenever any such need arises. Curiously, in some cases, most, if not all fraudulent businesses, do not have specific owners. In most cases, such dubious schemes use the services of paid or hired hands to transact their deals, who often disappear into thin air afterwards. In essence, make sure that you know who is or are behind any scheme before you take them seriously.

(2). ANY GENUINE BUSINESS SHOULD HAVE A PERMANENT AND REGISTERED ADDRESS.

If you are wary enough, it is easy to see that fraud schemes hardly have a reliable physical address. In some instances, they will give you one address here that is likely going to be different from the address or addresses they may give you elsewhere. Whenever you observe such anomalies, it is a red flag indeed that demands you to conduct a more thorough research on the company before you commit your money in their business. Even when they give you an address, if you are not very convinced, it will do well to check them out in order to find out whether such premises are indeed registered to them or whether it is just a bogus claim. In these matters, you cannot be careful enough. As the popular legend goes, to be forewarned is to be forearmed, right?

(3). ALL BUSINESSES MUST BE REGISTERED WITH THE REQUISITE AUTHORITIES.

This is very common with Forex trading. Most of these scammers and the shady companies they use in defrauding people are neither known or regulated by the known and popular regulatory bodies. In such cases, you have nobody to turn to should anything go wrong and neither can you seek refund for any money already paid to them. These shady companies will suddenly vanish into thin air the moment they are done with you. Luckily, you can easily ascertain whether a company is registered or not from the local regulatory bodies, and if they are not, you obviously have a red flag that must not be discarded, and if you do, it is at your own peril.

(4). PERFORM GOOGLE CHECKS.

Like in most other matters, Google is a very reliable ally here too. Check out the company you are about to deal with and know their WOT rating. If the scheme falls short of this finding, it is an indication that you should be careful. It is also very common for the Google search engine not to know the company at all. This is another call to be wary until you find out more, before you commit yourself into anything.

(5). BE CAREFUL HOW YOU PAY MONEY.

It is highly advised, and for good reasons too, that you should be very careful how you pay money to any company, regardless of whether it is genuine or not. For this reason, you are recommended to pay money through either PayPal or your bank account, but not through your credit card. This is because, in some cases, criminals can steal your identity and empty your life savings fraudulently by using your card details. In addition, when you invest or pay money through your credit cards, it becomes a little difficult to exercise a chargerback option, the process through which any stolen money can be recovered. So, to be on the safe side, always pay through your PayPal account and not your credit card.

(6). BE WARY OF LUDICROUS PROFITS.

Scammers are good at working on your greeed to defraud you. For instance, they can offer you deals and terms that are just too good to be true. In some instances, they can offer you as much as 20 percent ROI( return of investment) or even more within a very short time without actually doing anything. Whenever it sounds too good to be true, it probably is. Furthermore, it is simply foolhardiness to think that you can make such phantom profits by just investing and doing nothing else. Brokers in Forex trading do this a lot. Nothing is farther from the truth than the bogus claim that you can make money by investing alone without doing any work, particularly in Forex trading. 

In fact, there’s a lot more to learn and do in Forex trade, if you must make any money at all. Without any doubt, there is money to be made in foreign exchange business, but a lot depends on the type of foreign trader you are, how much you know about the business entirely, as well as how patient you are. Never take their word for it.

(7). WATCHOUT FOR INCONSISTENCIES AND CONTRADICTIONS.

If you are wary enough and very observant, it is most likely that you may see certain irregularities and contradictions in the information and details they give to the public. For instance, it is common to observe that the information they give somewhere contradicts or vary from that which they give out at another place. This is indeed a red flag. Any enquiry with regards to these contradictions, may evoke tedious explanations that are bound to confuse you the more. Checkout for any telltale signs, for they may be your saving grace eventually.

(8). BE CAUTIOUS AND DO NOT GIVE IN TO GREED.

They will always promise you ridiculous returns and profits for your investments, and in the shortest possible time too. In reality, if there is so much money to be made and without much or any hard work, they wouldn’t refer to you, but would rather go it alone. This is the one reason why you must be very careful who you deal with. All their efforts will be directed towards making you aware of how much money you stand to gain, which depends on the value of your investment; the more you invest, the more profit or return you stand to make. If you are the gullible and greedy type, you may invest as much as possible, just so as to maximize your ROI. Do not allow greed to make you un-necessarily vulnerable.

(10). MAKE ENQUIRIES.

Whatever it is you want to get into, you are likely to have people around you who may know a little about it, and where you do, ask them questions about what is necessary and what to do or avoid. If you are not lucky to have any such people around you, ask for where you can find them. In essence, do not venture into anything without actually knowing what you are going into. Ask and ask again, it will only make you wiser.

CONCLUSION.

People are being defrauded daily through scam schemes and companies, but luckily, the majority of those who fall prey are the gullible and the greedy, people who wish for humongous money with little or no work at all. If you are that greedy, it beclouds your reasoning and perception, since all you can think of is the mammoth gain you stand to make. It may surprise you to know that, eventually, there may not be any profit to make after all. Well, for what it is worth, you have been regaled with what to watch out for in order to avoid being defrauded. 

For instance, it is unthinkable to go into any transaction with a company whose address you do not know and whose owners are equally anonymous or unknown. The regulatory bodies that inspect or checkmate the activities of such companies must also know about them, and where they don’t know them, do not go ahead with the transaction. If you come up with hollow answers on all or most counts, it is time to refrain from any further involvement with the company. 

It is human nature to want to grow, to make significant gain on all investments, but we must not be overtly greedy, or else we stand to reap the dividends of greed. After all, it is said that, we are indeed a product of pur choices, aren’t we? Most truly, we are.

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