PUMP AND DUMP SCAM
- How To Spot Pump and Dump Scams
- When investing, you must be aware of the different types of trading scams. With it being easier to invest your money, it is also easier to get scammed. Pump and dump fraud comes in many forms and some are easy to spot.
- If someone you do not know has reached out to you to invest in a stock or cryptocurrency, this could be a pump-and-dump fraud. This could be through private messages or someone who has replied to a post of yours in a forum.
- Something else you must be wary of is false promises with pump-and-dump scams. People will promise huge returns and insist you must invest as soon as possible to “maximise your profits”. It is a common tactic from a pump-and-dump scammer.
As mentioned, there are different types of online trading scams targeted towards traders and investors. One of the most common, yet easily disguised scams, is pump and dump fraud. This is where scammers disguise themselves as influencers or investors to create hype around stock or crypto, leading more people to invest in it and causing the value to increase. Once this happens, the scammers will then sell their shares, earning large amounts of money and leaving the rest of the investors with little to no returns once the stock inevitably plummets.
AFFINITY FRAUD
- How To Spot Affinity Fraud Schemes
- Although an affinity fraud scheme can be hard to spot, there are a few signs that will give it away. When reaching out to a leader, the scammer will offer you a “faith-based” investment, only available to your religious group or organisation. The scammer may also tell you that religious-based investments are not regulated. You can also spot an affinity fraud scheme when an unregistered advisor reaches out to your group. They will also advise you not to seek independent assistance with the investment.
- Affinity fraud is easy to go unnoticed. If you are the victim of affinity fraud, you must seek assistance and not try to sort it out yourself. The longer you leave it, the less likely you will be able to find the perpetrator.
Affinity fraud is a form of online scam which targets people within certain demographics in an attempt to try and persuade them to be part of a pyramid or Ponzi scheme. Scammers will often target religious groups, with the promise of high returns from little investment. Due to the nature of affinity fraud and the demographics targeted, victims will often try to sort the repercussions out themselves when they realise they’ve been scammed, rather than reaching out for legal assistance. This is where we can help.
PENSION SCAMS
- What Does Pension Fraud Look Like?
- There are various different types of pension fraud that anyone can fall victim to, so being vigilant whenever you are contacted about your pension is vital. Often scammers will be very knowledgeable on the subject of pensions, will refer to credible websites such as HMRC and will talk about the people they have helped. This contact could be made through cold calling, over email, on social media or even in person. So, if anyone contacts you about your pension, it’s best to ignore it and contact your provider yourself to find out if the contact was legitimate or whether it was a pension scam.
- Once they have spent time building your trust, perhaps even calling back on another occasion, they will try and persuade you to transfer part or all of your pension to them or directly to an ‘investment’. More often than not, the pension scam involves your money being stolen outright. They will make a range of promises about how much you can benefit, then never follow through with them.
There are numerous types of pension scams, however, online scams are becoming increasingly more common as more and more people take to the internet looking to combine different pension schemes or manage their pension funds more closely or efficiently. Pension scammers will often appear very knowledgeable on the topic and will refer people to credible sites, such as HMRC or government-recommended schemes. Once they have your trust, they will try to persuade you to transfer your pension to them as an investment opportunity where, more often than not, all money transferred will be stolen outright.
ROMANCE SCAMS
- How Do Romance Scams Work?
- Romance scams and fraud – also known as dating scams – involve victims being duped into sending money or sensitive personal data to scammers. The scammer will use manipulative tactics in order to gain the trust of their victim and convince them that they are in a genuine relationship with one another. Romance scams are perhaps one of the most emotionally taxing forms of scams, as they are built over a number of years and the victim ends up losing a lot more than just the money or personal information parted with before the scammer disappears.
- People of any age, gender, or sexual orientation may fall prey to romance scammers on dating apps like Tinder, Match or on social media platforms like Facebook, Instagram, or TikTok, but the victims are disproportionately seniors who are lonely or isolated.
The rise in online dating platforms has brought with it an increase in the number of romance fraud cases. Romance fraud can be hugely devastating and emotional for the victim involved and in a lot of cases, involves the loss of large sums of money. However, as the transactions used typically involve bank transfers, this means that it can be traced and we can look to recover your lost funds.
BANK FRAUD AND SCAMS
- What Is Bank Fraud?
- There are many different types of bank fraud, but overall, bank fraud is a type of financial crime which involves scammers either fronting as or using financial institutes, such as banks and other similar services, for their own gain and to commit criminal activities. With bank fraud, criminals can do things such as create false accounts, use false identities and manipulate bank records. They can also steal card and payment information. Bank fraud is a serious crime and can result in serious fines and penalties, or even imprisonment.
Bank fraud is a major problem which can cause serious financial loss for those affected. It is a serious crime and one which can take and include numerous different forms, from impersonation scams and identity theft to phishing scams and authorised payment fraud.
Impersonation Scams
- How To Spot Impersonation Scams
- Impersonation scams share signs with many other types of investment fraud. One of the biggest signs of an impersonation scam is the sense of urgency in which the scammer has you believe that they need the money. If they are impersonating someone you know, or have dealt with recently, then you may be able to pick up on signs that they are not who they appear to be.
- Another sign is that they will often try to rush or panic you, scaring you into sending the money – it could be that they are in trouble and need money to get out of a difficult situation, or are threatening to suspend a service if you don’t pay.
Impersonation scams have become increasingly common and many people around the world are becoming victims of this type of fraud.
Impersonation scams involve the impersonation of a government body, bank, delivery or utility company, or other organisations and trusted people who then demand payment from you. In some cases, scammers will even impersonate your family or friends.
This type of scam usually starts with an email, phone call, or even a text message, but there are many other ways the scammers will try to get in contact with you, such as through social media. Social media has become a common platform for impersonation scams as the scammer will pretend to be someone, claiming that the old account is no longer in use in an attempt to dupe the victim into sharing personal and sensitive information.
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