A Complete Guide for Scams

Scams are the fraud done online with the personal information of the money holders.

Scams are the fraud done online with the personal information of the money holders. The details are stolen from the clients by tricking them through online links, emails or other forms. There are different types of scams that are executed by the fraudster. If we define scam, then Google says it’s a straightforward but dishonest plan for making money. For example, fraud is implemented by promising the victim a share of money for a small investment.

Scams can hijack victims’ cell phone lines to get details of transactions and money expenses. Therefore, one needs to be careful while trading online, as many frauds nowadays are conducted using the internet. These Could be banking fraud, money investments, employee opportunities, Facebook requests, virtual shopping, OTP scams, lottery scams or coupon scams.  

Types of Scams 

A scammer has tactics to attract the investor be it through door knocking or virtual trading. Frauds are of many types to take advantage of the general people. As digital technology is increasing, so are the scams online; these technologies have some loopholes that become an edge for cheaters. Let’s drive through these types of scams quickly. 

Here, we have mentioned both general and trading related frauds performed online. 

Email frauds- The emails we write or use for our convenience could be a significant threat. The links over emails or websites shared carry viruses that could affect our systems and even steal data from them. Viruses are software that simulates the system we use to trade or invest or for personal use. They transfer the data to the fraudulent or hack the device. This could create a severe problem for the user. 

Debit/Credit cards- These are money transfer frauds that lead to loss of capital for the holder. The fraud is executed by hacking the card codes or by being an imposter to get the details. For example, the imposter could use the identity of a bank person, financial institution and others. 

Likewise, there are several other frauds online: tax refund fraud, internet, bank fraud etc. 

If we talk about online trading scams, then there is a list of frauds. We’ll have a look at some of these main cheating tricks and commonly used ones. 

  1. Affinity Fraud
  2. Advance Fee Fraud
  3. Binary Options Fraud
  4. High Yield Investment Programs 
  5. Internet and Social Media Fraud
  6. Pump and Dump Schemes
  7. Primary Bank Investments
  8. Ponzi Scams
  9. Pre-IPO Investment Scams  
  10. Pyramid Schemes 
  11. Promissory Notes 
  12. Commodity Pool Fraud
  13. Microcap Fraud
  14. Precious Metals Fraud
  15. Foreign Currency Trading Fraud

Affinity Fraud: These frauds are carried out by being an imposter of the identifiable groups. They become a member of the group; these groups could be a religious group or elderly group. Through these groups or leaders, they promote their schemes and convince people to invest. They, after having the investment, walk out of the group. This brokes the people’s trust and makes a massive loss for the group as it occurs between small groups; people do not usually take legal action, which makes the fraud a tight structured one, and not known to many. 

Advance fee Fraud:  Advance fee frauds are common frauds; in this, the victim pays the money in advance. The payment could be tax, commission or fee etc., to be paid in advance for stocks, warrants or money etc. The fraudster promises to repay the initial amount paid to allure the investor. These targets those who have already been into the business of trading and investing in securities. They use false email ids and websites to make investors believe. 

Pre-IPO Investment Scams: The fraud is staged using social media platforms like Facebook, Twitter etc. The cheaters of this scam offer the investors Pre-IPO shares for an initial payment. They publish or post their advertisements regarding Facebook, Twitter etc. and engage people with attractive schemes. SEC’s Office of Investor and Education and Advocacy keep updating investors about these frauds.

Pump and Dump Schemes:  The investor in this scheme is fraudulent. They buy the shares and, by using misleading techniques, pump up the prices of the stocks. Once the price is high and pumps up, they try to sell the shares in the market. Resulting in the dumping of shares in the market. Occurring online, these fraud schemes offer the trader to buy the shares online. 

Ponzi Scheme: The scheme promises to carry out an investment on behalf of the trader and get a high return for the same with less risk involved. But they pay the money to earlier investors and keep the remaining amount with themselves. Thus, they keep the flow of money running to have a constant benefit from the investors. Named after Charles Ponzi, this scheme fails once the investors stop investing. 

These are some common frauds online, but there is a whole good list of the frauds. From small to big scams, they keep investors attracted to their fraud schemes. 

How to Recognize a Scam?

To protect oneself from these scams, the trader should be well aware of how to avoid these scams and be a safe investor. Below are the guidelines which should be followed while investing online in the trade.

  • Scammers pretend to be a part of known companies or on behalf of the government. Using real names of the companies, they try to sound professional and trustworthy. Using the latest technology, they change their names online for being a genuine person of an organization. 
  • They offer prizes for the investments making the investor fascinated with the deal. It could be a lottery win or any other kind of prize money. They also use problems to make investors pay, like account verification or bank managers. 
  • If an online trader/broker asks for immediate payment or action over the investment, be alert as a scam. 
  • They use a specific payment method, an account online transaction or sharing of OTP or sharing debit card last initials. One should know all these details are not for sharing but to keep a secret for oneself and a trusted person. Never share personal information online. 

What could be done to avoid the Scams?

  • Personal details are the first thing that should never be shared online for trading without having an authentic and official knowledge of the website or broker. Don’t share these personal details and don’t respond.
  •  Use the block list to avoid such calls and messages.
  • Never act immediately; if the broker or person online asks for immediate payment, then drop the call and block that number or website. 
  • Consult someone you trust and the one who knows about online trading. 
  • Traders can report such websites or numbers to the Federal Trade Commission (FTC). 
  • Fast Action Refund (FAR) is the best option available online to deal with scams. As their byline says, it’s “a hope in the dark”. The website protects the traders against any investment.
  • FAR works to make the stolen amount of money back into the right accounts lost due to the scam. 

Fast Action Refund (FAR) 

It is the world’s number one scam detection platform with the best services rendered. Recovering the lost amounts with their online detectors and digital techniques. In addition, they have a full dedicated website for investors giving information about the threats online and their protection. 

The trading has grown manifolds with the technology, and so has the types of scams. Millions of users use the online trading system to get many facilities through brokers and information in detail about investments. The traders have control over their accounts, devices and trading with the platforms offered. 

With the developments of the financial markets, the whole market has become digitalized. Every sector trades online, and gradually people are updating themselves with such technologies. But with technology comes the danger of theft and scams. These try to trap traders with their attractive and innovative offers. The scams could be in forex, cryptocurrency and binary options etc.

The FAR works on the mission of refunding investors with their hard-earned money. Unfortunately, the money is stolen while trading online. They expose the frauds and return money to the victim. They have a team that is expert and professional about handling such online trades. 

FAR has a database of all the scams, which helps solve the online scam issues and recover the amount invested. They have a complete list of scams and types of scams one can complain about. With the contact details on their website, the investors can get in touch with them and seek help. Some of the scams mentioned on their website are:

  • Forex Trading Scams
  • Financial Scams
  • Cryptocurrency Scams 
  • Facebook Scams 
  • Job Scams
  • Email Scams 
  • Insurance Scams
  • Phishing Scams 

These are some of the scams mentioned on their website, and they have details of the scam, like what is the fraud and report any scam which has occurred to help the trader. 

There is an email address to seek help info@fastactionrefund.com and a contact option to get in touch with the team. 


The scam is something we all face in one way or another in our daily life. Traders and public investments are always risky due to the imposters working in the financial markets. To overcome the problems of fraud, Fast Action Refund is a good choice.

They help traders to hold the money invested and make the fraudster punished. This decreases the chances of fraud and acts as a risk management tool for investors. A website to lessen the burden of traders and make trading a smooth experience. 


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