The Three Worst Financial Scams People Fall Into Over and Over | By Desiree Peralta | Sep 2022

Can we learn once and for all?

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When hearing about scams, most people think it’s a common call saying they sent you some money, you won the lottery, or some random email to verify your account.

However, there are many types of financial scams, from selling you stuff that doesn’t exist to promising to double your money into a real investment.

What people stumble over time and time again are those that are seen as business or investment opportunities because they give you false hope of making a quick buck.

And they’re popular now, thanks to rapid information consumption platforms like Tiktok and Twitter, where most people refer to themselves as “the new millionaires,” convincing you that the formula for success is at your fingertips.

Here are three of the worst types and how to be vigilant when dealing with money.

Youtube used to be full of them. Now Tiktok has many, even Twitter and LinkedIn.

These scammers claim to be the gurus of certain businesses, and they are currently making easy 4-figures a month to 6-figures a year. Business is an opportunity that everyone can do, but you also have to buy a course from them to start doing it.

The big problem here is that when you buy a course, you realize it’s something basic, you can google it, and you probably won’t make the money they promise you.

There are also courses on saturated markets like Amazon or eBay dropshipping, and even if the person in the course teaches you how to sell, you won’t make a lot of money because there are already a lot of people doing the same thing.

How to be vigilant when dealing with such scammers

There are a lot of good courses from different people that teach you a lot of money making skills (I bought writing and programming courses that taught me what I use to make a living today).

But those classes didn’t teach me how to get rich overnight; they taught me a specific skill that I now use to make money.

So if you want to be a writer, virtual assistant, programmer, bookseller, or dropshipping entrepreneur, buy a specific course that teaches you these skills, not someone’s course you saw on TikTok, which is make”million” in a mysterious strategy.

Remember, people making over $10,000 a month don’t need you to buy courses from them.

Pyramid schemes still exist because people still believe they can double their money in 3 days without doing anything. But if a person can actually legally invest and make a 50% profit on that money, why would they need your money to do it?

People who 100% assure you that just getting into their system can make you a lot of money are in a bubble that could burst at any time, even if they look like big corporations with legitimate buildings.

Quadriga, one of the largest cryptocurrency exchanges in the world in 2014, promised to get 10% of your money as long as you deposit it there, but then the CEO dies under mysterious circumstances and no one gets their money back .

Luna is the most stable cryptocurrency in the world and it offers you 20% interest just for putting your money in their protocol. The cryptocurrency was hacked in May 2022, causing it to crash in less than 24 hours, costing people $40 billion in the market.

Many other big companies offer you amazing profits just because they are considered trustworthy and smart, but they may be creating a bubble that won’t last.

How to be vigilant when trying to decide where to invest your money

If something is too good to be true, it’s probably because it is too good to be true. There is no legal and safe way to earn more than 20% a year on your money without doing anything, so watch out for those investing gurus who promise you nothing for nothing.

I made 20% to 30% of my money in trading, but it took me years to learn and lose, and one thing I can assure you is that there is no easy and fancy way to make that much money.

No extraordinary company will “Use your money to earn investment profits“Because even a large trading company, losing thousands of dollars a day, cannot guarantee you a fixed income in a short period of time.

Advance payment fraud is when a company or individual asks you to send money in advance for an asset, service, or product. They’ll promise an incentive, discount, or better product for the money in advance, or tell you they need the money to get to work.

However, when you pay them, they don’t give you a service or product and often disappear. It can also happen that they don’t meet the delivery date of the product, or the end result is not as promised.

These types of companies or people will usually give you great service before you make a deposit, they will answer any questions quickly and will let you see that with them you will get the best service at the best price, but this Just a way for you to trust them and make a quick deposit.

how to protect these people

This is the hardest to predict, as some companies actually require you to pay up front for their services (to protect yourself or to buy materials), but there are some signals and tricks you can use to be more vigilant when buying:

  • If a business requires you to pay upfront, ask them for a contract or warranty to defend yourself in case something happens.
  • If the amount is large, be sure to contact them in person. (People you can’t reach directly always hide something).
  • Always look for reviews, even on Google (search company name + scam/fraud).

This is the scam I fell into. It was a house that was not yet fully built. The company gave me a cheaper price because it wasn’t ready yet, but the delivery date was very late and I didn’t get a response from them. Ultimately, the house wasn’t what I imagined it to be and going to that real estate company to do research was avoidable.

I think most financial scams in investments and businesses can be avoided if we understand once and for all that there is no quick and easy money.

There are no fancy ways to make and keep money. You don’t go to parties and talk about how awesome it is to make pennies in an S&P 500 index fund or a 9-to-5 salary, so don’t expect people to be excitedly waiting for your business opportunity to come in.

The worst financial scams are not phishing, lottery tickets or a call from someone with poor English saying you need to give them your money back because we all know how to protect ourselves from them.

The worst opportunity is presented as the business opportunity you want to enter because you believe you can grow faster than your current investment opportunity, which only gives you 8% per year.

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