How to spot an investment scam

[Nathrixxx]

Considering the extent to how Cryptocurrency investment scam is increasing daily, it is also a desiring act to raise a counter campaign against it as information gives power to direct, we all know how the experience feels like if once being a scam victim, mistakes sometimes are inevitable if knowledge is in absentia.
The aim of this is to enlighten begginers on current and future elements of scam to look in for before investing in Cryptocurrency

FOCUS POINTS:
investment scam
warning signs
Online scams

Investment scam is having a deceptive mind to lure, frame lies or fake things that appear interesting to individuals or group as an opportunity to make profit from but with a contrary intention not to pay or refund the victim back both funds and earnings after due task has been rendered.

it is advisable not to invest on what you're doubting about or lack the technical knowledge of, else you have reliable proves to ascertain such.
we have some investment with examples such as:
Cryptocurrency, forex trading, Ponzi schemes, these has the highest lead of perpetrators and victims.

A scam can take many forms, this could include:

a fake cryptocurrency which doesn’t and won’t ever exist – for example if it’s a fake Initial Coin Offering (ICO)

a bogus investment which promises to put money in a legitimate cryptocurrency

a dangerous website link that then downloads malware onto your computer

Companies contact you out of the blue.  This could be through a cold call, text, message on social media, email or brochure.

They pressure you into making a rushed decision.  This could be with a limited time offer, bonus or discount if you sign up before a deadline.

They call or email you repeatedly or keep you on the line. This is to try keep you engaged so they can pressure you to make a rushed decision.

It seems too good to be true.  The old saying rings true - if they downplay the risks but the investment is high return, it could be an investment scam.

They ask you to keep the investment quiet.  The scammer might tell you the investment opportunity is just for you and ask you not to tell anyone.

They’re not registered on the FCA website.  In the UK, a firm must be authorised and regulated by the FCA to do most financial services activities. See if they’re registered with the FCA.

The FCA also has a warning list so you can check if you’re dealing with a known scam.

You will likely be approached either through a cold call on your landline or mobile or via an email or text. The questionable investment could be advertised on social media or in a pamphlet.

types of investment scam
A totally fictitious investment which doesn’t exist.
The investment exists but the scammer takes the money instead of putting it in the opportunity.
The scammer pretends they’re representing a legitimate and trusted investment group, but they’re lying.
source link:
https://www.which.co.uk/consumer-rights/advice/how-to-spot-an-investment-scam-a7CeY6d5Luf0

[Husires]

Identifying scam is a thing, and losing money on high-risk investments is another.
Both lead you to lose money, but one is a loss that can be avoided if you work, and the other is a loss that can be reduced by learning.
It is wrong to include cryptocurrencies with Ponzi schemes, but some cryptocurrencies have the characteristics of Ponzi schemes.
The same thing for forex trading, it is not a fraud, but some of its practice without knowledge will lead you to lose your money.

[CryptopreneurBrainboss]

I'll go with a simple answer, if it's too good to be true then it's an investment scam. All the exposed investment scams have one thing in common which is the mouth watering offers they use to decieve their victims. Simply overcome greed and you have avoided 90% of the investment scams out there then improve on your knowledge about the industry. Don't stay ignorant as that doesn't help matters, always keep yourself update as some investment scams comes with moderate promises as well. The only advisable way to invest your money is to do it yourself don't trust anyone or platform to do that for you.

[Ryker1]

Well, all quoted by OP was right.
There are too many factors to identify an investment as a scam but all you have to do here is to open your common sense and do always research.
Because as of now is too hard to define a good project, there are projects that seem good to be true with a complete paper and good documents. It is really hard to distinguish the real one. But in the end, they will disappear and never come back.
People should understand not all risks can be profitable enough.

[Luzin]

From my experience, scammers provide a web address. He messaged us greeting us, asking how he was. Then in the end provide investment advice. If I am given a web I usually try to investigate the web with who.is . In addition, usually the benefits offered are strange or too large. Then offer profits in a short period of time. Indeed, many messages that come through telegram, sometimes I ignore the message.

[sheenshane]

It seems good to be true.

It's quite not easy to spot this kind of scam investment because it's good to be true and there are too many of them was a victim of this.  They give sweet promises of a high return on your investment which is not good to put money if you will hear this kind of offer.  Actually, sometimes we are only after with the possible profit that we could take, we didn't have research how legit they are and that should be the first step we must do before diving in and put your money.  But yet, there's a lot of ways that you can sense it's a scam or not.

Always be vigilant on having investment DYOR first before anything else.

[GeorgeJohn]

From my experience, scammers provide a web address. He messaged us greeting us, asking how he was.

Lol...bro scammers have varieties ways of trapping people, even though you spot them in order to get their strategies now, they can as well introduce a different device or method, because i noticed this people that involves in scamming just took it as profession which they only base on how to get the intelligence of people, the only way we can escape from them is to be curious about the kind of investment platforms we enroll with, and also carryout investigation before we adventure into any platform via investment.

[Awaklara]

From my experience, scammers provide a web address. He messaged us greeting us, asking how he was.

Lol...bro scammers have varieties ways of trapping people, even though you spot them in order to get their strategies now, they can as well introduce a different device or method, because i noticed this people that involves in scamming just took it as profession which they only base on how to get the intelligence of people, the only way we can escape from them is to be curious about the kind of investment platforms we enroll with, and also carryout investigation before we adventure into any platform via investment.

Yes, based on what I know that scamers always have various ways to deceive their victims. instead of giving return on investment with high ROI and their first target can be via messages on Telegram, gmail messages, other social media sites etc. I not an expert on cryptoqurrency or bitcoin, but I know a little that investing in the crypto industry is very risky, especially if don't have extensive knowledge, can easily lose.
in the same case that investing in crypto can't make rich overnight, crypto prices can change at any time and as investors of course we must have a careful plan, further research and determine investment targets (when to enter and when to exit).
Also, I always avoid that if I find anything suspicious or unreasonable, I prefer not to. Because according to my instincts it's like a red flag or a (warning).

Correct me if I wrong

[tranthidung]

If you think you are not good to spot scam projects, you can do the opposite, try to find good projects.

Good projects should be sponsored or backed by good institutes, ventures, backers, sponsors. If a specific project you're considering to invest in don't have those big pluses, skip them.

I mean, if a project is lack of such things, it does not mean it is a scam one but to be safe, you should not invest in.

About scam project, if it is lack of such thing AND provides offer that is "Too good to be true", it's highly that it is scam project.

[Darker45]

It is actually easy to spot an investment scam. You only need to be skeptical and that's it.

If I were to generalize to make sure you are safe from all kinds of investment scams, I would just say, stay out of every investment opportunity offered online whether by ads, people you don't know, reviews, and so on and so forth. Just stay out, whether the ROI is too good to be true or not. Just say no to investment offers whether they came from Elon Musk, Barack Obama, Jeff Bezos, Theymos, Satoshi, and others.

If you want to invest, buy Bitcoin yourself.

[cryptoaddictchie]

If you think you are not good to spot scam projects, you can do the opposite, try to find good projects.

I think this is good counter. A good project could save you from filtering those filthy scam projects. Most of the good projects with shown vivid details and potential could leave you out from being a victim of scam.

Most scam projects are easily detected based on their initial set up. Team, project concept and eveb their current status could give you a hint of their agenda.

[lovesmayfamilis]

If you think you are not good to spot scam projects, you can do the opposite, try to find good projects.

I think this is good counter. A good project could save you from filtering those filthy scam projects. Most of the good projects with shown vivid details and potential could leave you out from being a victim of scam.

Most scam projects are easily detected based on their initial set up. Team, project concept and eveb their current status could give you a hint of their agenda.

Good. Let's assume that I don't know how to detect scams. How do you think I can find a good project? I don’t know-how, and I don’t know how to recognize fraud. Does this mean that, with my ignorance, I can confuse a bad project that makes a bright advertisement, attracts supposedly famous personalities to the team, and looks like a promising project for a good one?
Better to be a skeptic, as described above.
Believe in neither good nor bad promises. Investment should not be based on haste. Money can be lost very quickly, but earned for a very long time. Therefore, to become a successful investor, one must understand that the probability of losing is always greater than that of winning. And only with this approach, realizing what you can lose, you can be more careful about your investments. You don't have to be naive, believing that someone has suddenly decided to give you some of their money.

[joniboini]

[Good. Let's assume that I don't know how to detect scams. How do you think I can find a good project? I don’t know-how, and I don’t know how to recognize fraud. Does this mean that, with my ignorance, I can confuse a bad project that makes a bright advertisement, attracts supposedly famous personalities to the team, and looks like a promising project for a good one?

If we're entirely new to the game and don't know how any fraud works and how to recognize it, stepping out and learn more about the industry before doing any investment is what we should do. There's a lot of channels on Youtube covering many scams on various market, so if you don't like to read, there's still a lot of resources to use. Doing your own research on the so-called scams might help too, so you don't have to rely on somebody else to do the research for you.

[ice18]

Huge returns, fast ROI, anonymous teams and no known product, this are the most common things to consider because its definitely a scam. Don't just believe in huge fake payout proofs, theres no easy money in this world. Always DYOR before investing your hard earned money into something that you dont have any idea because in the end, its better to invest into small returns but legit one compare to easy money but eventually ended as scam. 

[ifarted]

I don't have any experience yet but this is actually pretty good. Although it is hard to determine a scammer since they are very skillful like it's too good to be true but for me this thread is still helpful. It can guide users who are unexperienced like me.

When investing we should always think twice and analyze the person whom your investing for to avoid being scammed. We should not take risk because we might fall down. We should be careful and i hope on my first investing, i won't get dragged down by these filthy scammers.

[Pmalek]

Consider any offers you read or receive online from unknown people to be a scam until proven otherwise. Congratulations! You didn't lose any money.
People are way too prone to trust others. They think if they wouldn't do anything bad, why would something bad happen to them? But that's exactly what can happen, and sometimes it does.

- Don't trust companies, firms, or investment funds to invest in crypto for you. You want Bitcoin, buy it yourself.
- If you are promised a fixed return on your investment, it's usually a scam.
- If you can't find information on the team and a way to contact them, don't give them any money.
- If it's a brand new site, don't trust it with any investments.
- Use your common sense. No one has any interest in changing your life and making you rich over Telegram of Email. Don't thin they will.

[TheNineClub]

Falling for a scam is something that can happen to any of us, no matter how much experience we have. However, what needs to be focused on is the level of involvement average new small investors have with what they invest in. Most don't take time to investigate, get to know the project, see if it's something they truly want to support. Most want to be told where to put their money and when to take it out. That's the biggest problem.

[Skinny48]

What makes an investment scam attractive to victims? They are always promising too good to be true returns, and since newbies are also here to make some cash they will choose the easiest way out and that is the projects that promised high yield returns, the higher your experience the lesser you get scammed, if a newbie isn't ready to learn at first and do some research the newbie will fall more to scams

[Maestro75]

it is advisable not to invest on what you're doubting about or lack the technical knowledge of, else you have reliable proves to ascertain such.

If we follow that pattern it means no one would have invested in bitcoin because it was completely covered in doubt and uncertainty in its early days. Even till now some people still doubt bitcoin but that has not stopped those still doubting to invest in it. Though they just put in little cash on it.

we have some investment with examples such as:
Cryptocurrency, forex trading, Ponzi schemes, these has the highest lead of perpetrators and victims.

Cryptocurrency is an investment
Forex Trading is an investment
Ponzi scheme is never an investment. It is robbing Mr A and then using his cash to make Mr B happy. At the end it crumbles. Ponzi scheme is not in the same class with the other two and should not be compared with them.

[_BlackStar]

Cryptocurrency scams have mostly been recognized by the community because so many victims in the last 10 years. Investing in cryptocurrencies is a high-risk activity and therefore every potential investor is always advised to invest carefully and safely which they can do if they pass due diligence with various analyses. No one will be held responsible if you and I make a mistake in investing because this is my money. So do it the right and proper way as suggested by more experienced people. Especially newbie, we have a lot to learn so as not to get stuck.