Look out before you invest, beware of Online Trading Scams

Trading of stocks and other entities online is very common these days, the digital transformation has made banking, transacting, and investing easy over time. Several individuals rely on brokers to invest their money. A few scamsters, posing as brokers, are tricking people into trading on fake websites and scamming their money, called Online Trading Scam.

These fraudsters offer investors great profits with very little risk. These claims are generally highly exaggerated and false, which lure investors without proper caution. They advertise on social media handles and websites that mimic the authentic platforms. They may impersonate legitimate financial institutions or advisors and create a false sense of authority. They will pressure people to invest quickly before the opportunity closes, without giving them time to judge the credibility of the offer.

How do scamsters operate?

Most trading scams start on social media or through messaging apps. If someone we meet online or via social media platforms introduce a trading website that we never had heard of, it might be part of a scam

• Fraudsters promote the idea of investing small amounts of money and offer highly unlikely profits
• When the investors try to withdraw the profits, they are asked to pay service charges and taxes, making it difficult for them to withdraw the money
• Scammers stop responding to the messages and are not accessible after taking a certain amount of money

How to protect ourselves from Online Trading Scams?

•  Do not trust any stranger online or invest your money with them. There are several authentic financial investment advisors qualified to help with the investments.
•  Instead of falling for schemes online, approaching professionals for investment advice really helps.
•  Authentic financial organizations never ask you the personal details like banking account details, OTPs, etc. Beware of people who ask you for such information.
•  When you get a fishy message from an unknown number, block it and report the user.

Lastly, if you get scammed, you can lodge complaints about the fraud at the nearest Cyber Crime cell or register a complaint online at https://www.cybercrime.gov.in/ or contact the Cyber Crime Cell helpline at 1930. This may not only help you find the fraudster's identity and get your money back but help raise awareness so that others would not fall trap to such scams.