Spotting A Scam For Beginners

Spotting A Scam For Beginners

Spotting a scam is a lot harder than some people might thing, but it is crucial that you know how to do this so you can keep your finances safe. Today, we want to talk about the most important points for spotting a scam, so you can stay safe from fraudsters.


Spotting A Scam For Beginners

Alright, so since we have been getting a lot of questions and complaints from people in regards to being scammed by various brokers, trading platforms, and other investment programs, we decided to do this piece on spotting a scam and how you can make sure that you don’t get screwed out of your hard earned money by some nefarious criminals.



The first thing that you need to keep in mind when spotting a scam is that you always want to look for real leadership. What we mean is that no matter the company, trading platform, broker, or anybody else, you want to ensure that there is legitimate leadership and ownership. All too often, people will invest money with trading apps, HYIPs, or other such investment programs without knowing who is in charge.

If you go to any such website, you should always be able to easily locate who the CEO of the company is, or whoever else is in charge. If you cannot locate any coherent and real details about company ownership or leadership, you can rest assured that there are scammers afoot. Moreover, if there are people displayed as being leaders, don’t take it at face value. You actually need to confirm that the people displayed on the site are real, a big rule when it comes to spotting a scam.


Company Registration & Licensing

The next thing to keep in mind when it comes to spotting a scam, is that you have to verify that the company or business in question is the real deal. So, first off, this means checking to make sure that it is actually registered where it claims to be registered. For instance, if an investment company claims to be from the UK, you need to look in the UK Companies House database to ensure that this is true.

A solid way to help confirm the legitimacy of a business is to do research in regards to provided addresses, phone, numbers, and email addresses. If there is a phone number or email, try contacting the people, and always use Google maps to confirm that provided addresses are real. Moreover, investment companies need to be properly licensed with the FCA and other such financial authorities. If you cannot find evidence of company licensing, well then you have just spotted a scam. Remember folks, when spotting a scam, the company status is a big point to look into.


An Incoherent Business Model

When spotting a scam, another indication that there is something shady going on, is when there is an incoherent or totally absent business model. In other words, the website should always tell you in a clear and concise manner exactly how returns are to be generated. If it is a crypto, Forex, or some other kind of platform that makes money through trading, you need to see a portfolio of previous trades.

You need evidence that the people behind the HYIP have actually done this before, and successfully at that. Whatever the case is, whether it is a hedge fund, stock investment platform, or anything in between, you need to see a coherent and sensible business model, as well as evidence of past success. When it comes to spotting a scam, if neither of those things are present, you can rest assured that you have just come across a scam.


Promise of Ridiculous Profits

Perhaps the most crucial aspect in terms of spotting a scam in the works is to take a look at what the promised returns are. More often than not, usually always, investment scams of any kind will promise truly ridiculous returns. If you come across a trading platform or investment app which promises returns of over 1% per day, or maybe 3% at the very most, you can be sure that it is a scam.

All too often, people come across investment opportunities which promise several hundred percentage points in ROI per day, which is a clear indication that there is something shady going on. The biggest thing to remember when spotting a scam is that the promise of unrealistic profits usually always signals that there is a scam going on.


What The Web Has To Say

Another pretty safe way to tell if there is a scam afoot, is to check what the rest of the world has to say. You want to visit a number of forums and review websites, and do some independent research into the investment program or trading app in question. What does the rest of the world have to say? If there is a general consensus that any kind of program or system is a scam, you probably should not bother with it. Now, if there are a couple of complaints, but the majority of chatter is positive, then you can take a chance.


Other Unverifiable Claims

Finally, when it comes to spotting a scam, you really just want to look for any claims that cannot be verified. Some scam systems claim to have been featured on media and news outlets, which means that you want to go to those websites and make sure that this is true. If you see user testimonials, you want to do some research into the people who left those testimonials. More or less, any claims you see, you need to research.



Crypto Mentor Box Telegram Access


Spotting A Scam – How To Avoid Getting Scammed

At the end of the day, spotting a scam can actually be quite difficult, but it is essential that you get the basics down here. In terms of spotting a scam, we have covered the most crucial aspects for you to keep in mind. Now it is up to you to stay out of the way of nefarious criminals looking to steal your money!