Common types of financial and online fraud

More scams occur almost every day, so maintaining vigilance and online security is now more important than ever before. The following are the most common scams and scams currently available, please be aware.

Fraud of price difference contracts

Contract for difference trading used to be the exclusive domain of experienced high-end traders; However, now, as the market becomes easier to enter, more and more people are participating in the trading of these complex tools.

CFD stands for Contract for Difference. Contract for Difference (CFD) trading involves traders signing a contract and speculating on the difference in asset valuation between the time of signing the contract and its maturity date. In short, if the stock price rises, the buyer will pay the seller. If the stock price falls, the seller will pay the buyer.

The increasing number of contract for difference fraud cases is mainly due to the fact that scammers can use this investment method to exploit those who have just entered the market and are not fully aware of the risks involved in contract for difference trading and the potential loss of huge funds. The fraudster made full use of the fact that contracts for differences can be leveraged, which means investors can bet more money than they have invested.

Therefore, in contract for difference fraud, unscrupulous brokers often put pressure on investors to take leverage positions, essentially making extremely dangerous investments, and investors may not necessarily understand the financial consequences.

Ponzi Scheme 

The Ponzi scheme has a long history, but it continues to evolve, making it difficult to discover any of the latest scams. Ponzi schemes often lure initial investors to invest funds in fake companies, and even make small payments in advance to convince these investors that everything is legal. Currently, Ponzi schemes disguised as investments in cryptocurrency companies are very common.

However, the only funds flowing into the fund come from new investors. Usually, scammers will constantly exert pressure on investors to make higher value investments more frequently until suspicion arises and the funds flowing into the scam are depleted. At this point, fake companies and their websites will disappear - scammers and all remaining funds in the fund pool will also disappear.

Social media fraud

These scams come in various forms. You may see a post in the information flow informing you that you have won a gift card or other prize. However, if you enter personal and/or bank details (links will require you to enter this information to receive bonuses), fraudsters will use this information to engage in identity fraud or steal your account.

  In this case, an advertisement will appear suggesting some interesting celebrity gossip - and to read the complete and exciting story, you just need to click on the link. If you do this, you will be taken to a page asking you to download the latest version of Adobe Flash Player to read the article... but doing so will download malicious software onto your device, and fraudsters will use these malicious software to steal all your personal information and access your credit card, bank, and other accounts.

We also need to remain vigilant about healthcare fraud that is prevalent on Facebook and other social media platforms. You may receive a message or see an advertisement from a seemingly legitimate company in a push that offers services such as replacing lost social security cards - these advertisements may even carry the Medicare logo and other details, making them appear completely trustworthy. However, if you try to use their services, these companies will charge high fees - and in fact, the Social Security Bureau will replace lost cards for free or issue new cards containing your newlywed name.

Charity fraud

These scams exploit people's kind nature and desire for positive change. You may receive unfamiliar phone calls, unsolicited emails, or see advertisements on the internet that appear to represent real charitable organizations or similar organizations.

Many people have encountered these scams and later discovered that the money they donated was for a completely fictional organization. This type of scam is particularly common during holidays, so be extra vigilant during holidays.

The warning signals for charity fraud include being forced to donate immediately and/or requiring you to donate through cash, gift cards, or wire transfers - all of which are the favorite payment methods for scammers. Additionally, please note the message you received thanking you for your previous donation, but you do not remember doing such a thing. This is a common trick used to deceive unsuspecting victims into making further donations.