There's no denying that social media platforms offer useful videos that help users learn things.
Many professionals use the internet to share their expertise and educate other people about topics such as investments. However, be careful. Hackers also use social media platforms to fool victims who want to earn easier and faster.
Social Media Investment Scams 2023
According to USA Today, financial and investment scams-such as malicious crypto campaigns-stole over $3 billion from consumers in the US back in 2022. This was shared by the Federal Trade Commission, saying that the stolen money in 2022 was twice as much in 2021.
Investment scams are also a major problem in other parts of the globe. FTC and the Better Business Bureau explained why financial scams are becoming more rampant and notorious.
They said that the faster and more convenient internet, the rise of online apps and payment platforms, and the financial misinformation spread all contributed to the rise of malicious financial schemes.
If you are one of the Americans who usually see investment content on Facebook and other social media platforms, here are the things you need to know to avoid those that are scams.
How to Avoid Social Media Investment Scams
Almost all financial scams have the same red flags you must look out for. These include the following:
- They are always rushing or pressuring their victims to invest.
- Investment scams commonly claim financial returns that are too good to be true.
- Criminals behind these scams will promise victims low or no financial risks.
- Financial scammers use strong words, such as "guaranteed" and "proven."
- Investment scams always share testimonials from people who claim they're helping earn more money.
- They will share the rich life they claim to have to fool more victims.
Once you see these signs, here are the things you can do to avoid them, as reported by the Los Angeles Times:
- When investment experts contact you regarding an opportunity and rush you to send them money, try searching for their names. Connect their names with the words "review," "scam," or "complaint."
- When you receive an investment offer, ask your friend if they saw that individual or company. FTC said that there are chances that your online friends have already seen those.
- Avoid accepting unsolicited offers. Experts warned that if you received an email, text, or DM about investment opportunities with too-good-to-be-true offers, they are definitely scams.
