List of Frauds- 6 Widespread Scams to Avoid this Year

list of frauds

Do you want to save your hard-earned money from Fraud? Before investing your money, you must know the top scams that are rolling on big platforms such as Forex, the crypto world, and other places. So, to secure yourself from such Fraud, you must know the red flags. This blog will cover a list of frauds you are most likely to face, the warning signs to look out for, and what to do if you have been trapped in fraud schemes.

For many years, we have all observed vast financial frauds that cost multi-million dollars. These fraudsters promise you some type of benefit, a loan, a foreign lottery, a prize, and so much more; the point is they want money upfront before you can get your benefit. And soon they will force you to send a payment. So always be vigilant and think about why you have to pay to get the benefit. Do your own research and confirm the source to avoid these scams.

However, there are so many risks in trading; for this reason, you must be aware of the market and related frauds to secure your money. So here we have mentioned some common scams so that you can save yourself from getting tricked by scammers.  

What Is Fraud?

Fraud is a huge term that refers to conditions where someone deliberately lies to get some benefit from a business, entity, or person. Scammers can use utter dishonesty to try and trick you by luring you into what you actually want. Or they might use misinformation and omit essential details during applications to suspect you. However, they even act as someone else, as in identity theft.

Although scams cover a huge range of crimes and frauds, almost all frauds come under two categories. Business fraud happens when customers, employees, or investors scam your business out of money. And personal Fraud happens when another person or company forces you into giving up money or personal details that can be used for identity theft.

However, any kind of Fraud can be destructive, so always be careful. Let’s move forward to look at the most common scams you encounter once in your life.

List of Common Frauds You Must Avoid

List of Common Frauds You Must Avoid
List of Common Frauds You Must Avoid

You have seen that many people have lost their hard-earned money in fraudulent schemes, so it’s significant to beware of such frauds. Here’s a quick overview of some common frauds; once you read the list, you can be more confident and vigilant before investing. The most common scams are:

1.      Foreign Exchange Fraud

The forex market is the largest trading market where over Trillions of trading are done every day, and foreign trading schemes are used to defraud people by compelling them that they can gain high returns by trading in a market. Sometimes forex scam brokers present themselves as professional broker who fabricated fake details on the site they created. These fake brokers do not have a license and are, therefore, not regulated. They usually target novice traders to loot their investments.

So always be careful while selecting the brokers, as identifying the legitimate broker can be challenging as new brokers pop up constantly. As a trader, it is essential to research a company before depositing money.

2.      Identity Theft Fraud

It is the most destructive yet common type of scam. Identity theft happens when someone steals your personal or financial data, including your name, email, contact no, passwords, bank account number, and credit card password, usually through data mining. The purpose of these scammers is to use your personal details and your identity to access your account and drain money using the credit cards in your name. As per the FTC (Federal Trade Commission) report, identity theft cases have doubled in the last two years, with victims losing Billions.

Always be especially cautious about who you give your SSN to, as it can be used for identity theft. And it’s not always possible to change your SSN even after the Fraud. If you believe you are a victim of identity theft, report it on The site will help you recover your identity and cover any damage you have faced.

Moreover, FTC also recommends you act quickly, call companies and banks to report the scam, close the accounts and modify the Logins.

3.      Cryptocurrency Account Fraud

Cryptocurrencies such as Bitcoin and Ethereum have made lots of people into millionaires overnight. As it is a decentralized currency and many people started to take benefit of this in order to scam people out of their hard-earned money. However, fraudsters are always finding new ways to scam people, and the vast growth of crypto in recent years has created lots of chances for Fraud: and anything that promises high returns quickly can be a fraud. As any governing body does not support this virtual currency, it’s easy for fraudsters to loot people.

Some crypto scams, such as fake crypto sites that steal your money, phishing attacks, & pump-and-dump schemes, are designed to get access to your crypto wallet and transfer out your coins. If any person randomly calls you and insists you invest or buy crypto, don’t believe them; they are fraudsters.

4.      Investment Frauds

The most widespread investment fraud is a Ponzi scheme. This refers to Fraud, where new traders are used to paying the “returns” for the earlier investors. A Ponzi scheme broker usually promises to invest your capital with high profits and little risk. But, usually, scammers use your money to pay off earlier investors; and also keep some money for their personal expenses or to pay off debt.

However, Ponzi schemes often have little valid earnings, so the scammers need a stale stream of new money to keep things rolling. You can encounter a Ponzi scheme if they offer you high returns and slow delivery of redemptions. Be alert if you do not get a payment on time or are delayed in withdrawal.

5.      Fake Coin Exchanges Fraud

As there are so many crypto-related businesses, so it’s quite challenging to understand which ones are authentic. As these scams involve sending unnecessary emails from fake exchanges. The emails appear as if they come from a wallet provider, crypto exchange, or bank. The email contains a link that will take you to a fake site that looks authentic. Then, you will be asked to enter your details, which they can use to steal your money. These scammers may attract people with promises of great crypto exchange, even with some extra Bitcoins. But there is no exchange, and the investor does not know until they lose their money.

So always try to stick with the authentic exchange markets to avoid loss. Do your research and check the exchange’s reputation and authenticity before entering your personal details.

6.      Pyramid Schemes Fraud

A pyramid scheme is a fraudulent and unsustainable investment pitch that depends on promising improbable returns. But, in reality, it only gathers deposits from investors, often without faking activity on the interbank market. They just deliver fake promises and slogans.

An important way to avoid scammers is to inspect any scheme a broker offers you carefully. Be cautious if you have to recruit more people to boost your profit or get your investment back. If the broker asks for money upfront and gives you less detail, then probably the deal is Fraud. Pyramid schemes fall down when they can’t recruit sufficient new participants to pay earlier investors. These frauds always fail; that’s the reason they are less common than others.

End Note

Sadly, scams have become too common, and where there is money, there is a scam. The list of frauds mentioned above is the most common crime the FBI encounters. And don’t know who is going to be the next victim. So always be careful and take all preventive measures before investing. And stay away from the brokers who offer you high profits. Always check the license of the broker before giving them your details.

Moreover, If you have been a victim of any fraud, report it to the regulators, or you can also file a complaint with us to get your funds back.

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