Making money online is one of the most sought-after goals that people pursue. There are many money-making opportunities on the web, but not all of them are for real. One of the most promising money deals that you can find on the web is investing money. Sound paradoxical investing money when one needs money, but most dangerous online investments aimed to fraud you will make you believe there is nothing to fear. While some sites such as term life insurance quotes, financial calculators, subscription based sites might be safe, there are are a number of kind of sites that you should look out for.
Online Frauds are Similar to Offline Frauds
Most of us haveÂ received a chain letter asking us to send a dollar to someone else along with a letter in which one has to change the order of listed names to include one selfâ€™s. More or less this is how offline chain letters work and their online counterparts are much the same but sent by email. However, some of the most common online frauds also include Multilevel Marketing (MLM) companies and ponzi schemes to get you investing in non-existent or questionable opportunities.
Identifying Ponzi Schemes
There are countless ponzi schemes on the web aimed to get you investing in something that is too good to be true or does not exist. Many dangerous investment schemes use phishing techniques to get further personal and financial information that is later used to rip you off. However, some other ponzi schemes only try to convince you that you will earn high returns with little or no risk at all if you hand over your money quickly.
If They Rush You It Is For Something
Among the most dangerous online investments that can fraud you, we can name those that push you to get the money by any means needed to invest. They may suggest shopping around for payday loans, borrowing money from your family or using the money in your emergency fund because, after all, you will earn high profits with a one-time payment to get into the investment opportunity. This is the most common hook used by fraudulent multilevel companies, but many other scammers can use it as well.
Beware of Forex Opportunities and HYIP
High-yield investment programs (HYIP) and the Foreign Exchange Market (Forex) are two of the most abused and fraudulent investments that you must be wary of to avoid being ripped off. While trading currencies is a legit activity, scammers have found the way to dupe people with it, as high returns for HYIP are usually a scheme.