Octa Rings The Alarm On Investment Scams In 2024; Transparency, Vigilance Key Defenses

This year has been a busy one for scammers and fraudsters, with criminals stealing more than $1 trillion globally. Scams of any nature are troublesome, designed to steal personal information and ultimately money, but for investors it’s even more nefarious because they tend to have more cash on the line. Scammers know that and go where the money is, which is why cryptocurrency has been a big area for fraud in 2024.

Crypto Scams Take The Spotlight 

Take the so-called "pig butchering" scam that is running rampant in the crypto world and costs consumers billions of dollars. Criminals befriend investors and entice them to make crypto investments through what turns out to be a phony app or website. The investments start out slow, but the aim is to get you to invest tens of thousands of dollars. Once you try to cash out, the scammer requires you to pay a fee or makes it difficult to access your money. Eventually, the app or trading platform disappears along with your investment. 

The criminals target people by pretending to be interested in friendships, romances or business relationships. They often create fake profiles and put a lot of time into building the relationship with the aim of defrauding you. 

Here's one example of how this scam played out from California's Department of Protection and Financial Innovation. A California resident fell victim to cryptocurrency trading site Osain. After using the site for a while, the victim tried to withdraw money from the account, but Osain demanded a $4,700 handling fee. The victim paid it and was told an additional $1,300 transaction fee was necessary. The victim took out a loan to pay the additional fee. The customer service portion of the site stopped responding, and the website is no longer in operation. The individual never received any money. 

How To Stay Safe

To protect yourself from this scam, do your due diligence before investing in anything. Make sure it is a legitimate trading platform that has been in business and has a track record of serving clients well. Trading firms like Octa, the global broker serving Southeast Asia, go to great lengths to be transparent about the business, performance and customer base. When trading on Octa's platform, that's how you would know it's not a fake designed to steal your money.  

In addition to conducting your own research, any pressure tactics to act fast should raise red flags. If an investment idea is sound, it's not going to disappear overnight. If it sounds too good to be true it probably is. It's also important to remember that even the most legitimate-looking trading app or website could be a fake. 

Other tips to stay safe include: 

• Be mindful of websites and domain names that pretend to be real financial firms or cryptocurrency exchanges. Look out for misspelled URLs to clue you in. 
• Don't download or use any apps or tools that look suspicious or you have not vetted.
• Confirm any investment opportunity, website or app on your own before signing up.  

Ponzi, Pyramid Scams Alive And Kicking 

While cryptocurrency scams are driving a lot of the fraud in 2024, traditional investment scams like the Ponzi scheme are still alive and kicking. Last year Ponzi scams hit a seven-year high, costing investors $2 billion. 

Ponzi scams involve using funds from new investors to pay the so-called returns of earlier investors. It creates an illusion of profitability, but typically it's only the scammer or person at the top of the Ponzi scheme that makes money. Another variant of the Ponzi scam is the pyramid scheme, which relies on recruiting new investors to pay existing members returns. The pyramid or Ponzi scheme tends to come to an end when investors can't withdraw money and are left with mounting losses. 

How To Stay Safe

To avoid becoming a victim of a Ponzi or pyramid scam, you have to be able to spot them. Red flags to be on the lookout for include promises of high returns with little in the way of risk and returns that are consistently high. The markets fluctuate from time to time. If the investments are only going up and never deviate, it's too good to be true. 

Before you invest in anything, make sure the person or company offering it is registered with regulators. If the investment is secretive, complex or includes procedures that appear shady, go with your gut and stay away. Remember: you should never invest in something you don't understand. 

Octa is a prime example of a trading firm that is registered, holds international licenses and actually cares about its traders. Octa regularly collects feedback from traders to improve the platform, is constantly educating its customers online and offline about the dangers out there and spends time raising awareness about the need for transparency and security in the trading world.

To learn more about how Octa is keeping traders in Southeast Asia safe, click here. 

Get-Rich-Quick Scams Still A Thing 

Making money in the markets, whether you're trading stocks, currencies or crypto, doesn't happen overnight. Even the most seasoned traders know that it takes time and not every trade will be a winner. Scammers are hoping investors forget that, which is why get-rich-quick scams are still a popular way for bad guys to defraud investors. 

With a get-rich-quick scam an individual or company representative will reach out to you with a fraudulent investment opportunity that promises high returns with little in the way of risk and/or effort. They tend to use high-pressure sales tactics, making too-good-to-be-true promises and making it seem secret and exclusive. The idea is to exploit people's desire to get wealthy without having to put in the work and relies on a lack of knowledge on the part of the target. 

Transparency, something Octa prides itself on, is not on the menu with this type of scam. Some types of get-rich-quick scams include secret investments, exclusive access to the markets and cryptocurrency scams where the fraudster promises huge returns on new or unheard-of digital tokens. In Forex trading the scams offer traders huge profits with automated trading or expert advice that isn't really available. Reputable firms like Octa won't make get-rich-overnight promises. They know Forex trading can be complicated and offer a lot of hand-holding, trader education and simulated accounts to help traders navigate the markets successfully.

How To Stay Safe 

Vigilance is key to avoiding a get-rich-quick scheme. Just like with the other scams, if it seems too good to be true it probably is and should raise a red flag. It's important to do your own research and to ensure the investment is legitimate. Also any high-pressure sales tactics should be an indication that something may be amiss. Before investing in any opportunity consult with a financial advisor or seek professional advice. 

Scams focused on investing, cryptocurrency and getting rich are swirling as the world ends 2024. To avoid becoming a victim requires traders to be aware of the criminal's tactics and stay vigilant. While bad guys are defrauding investors to the tune of billions of dollars a year, there are legitimate trading firms like Octa, which are empowering traders in Southeast Asia to make informed and transparent investments. To learn more about Octa's transparency and how its trading platform works, click here. 

Featured photo by Stephen Dawson on Unsplash.

This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.