INTERNET AND SOCIAL MEDIA FRAUD. To support them with investment decisions, many investors are using the Internet and social media. Although these online tools can provide investors with several advantages, these same tools can make criminals tempting targets. Criminals adapt rapidly to emerging technology – and the Internet is no exception and as such vulnerable to numerous scams such as binary scams, real estate scams, investment scams.

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Without wasting a lot of time or money, the Internet is a convenient way to reach a mass audience. With minimal effort, a website, email post, or social networking platform may reach significant numbers. For fraudsters it is easy to make their messages appear genuine and trustworthy and often difficult for investors to tell the difference between truth and fiction. Even before supplying your phone number and email address, if an investment promotion captures your attention, investigate the “opportunity”. You might otherwise be setting yourself up to be targeted for investment fraud.

The key to avoiding investment fraud on social media sites or elsewhere on the Internet is to be an educated investor. To learn specific steps you can take, see How to recover from fraud. Below, we give you other helpful topisc such as why you should hire a private investigator, cybercrime forensics, How can i get my money back from a scam

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Social media

For U.S. investors, social media, such as Facebook , YouTube , Twitter and LinkedIn, have become essential resources. Investors turn to social media, whether they are looking for analysis on individual securities, background information on a broker-dealer or investment manager, advice on an overall investment plan, up-to – date news, or simply want to discuss the markets with others. A variety of features that criminals may find attractive are also offered by social media. In their efforts, fraudsters may use social media to appear credible, hide behind anonymity and meet many at low cost.

Always be wary of unsolicited offers to invest, this are most likely associated with internet and social media fraud. Unsolicited sales pitches may be part of a fraudulent investment scheme. If you receive an unsolicited message from someone you don’t know containing a “can’t miss” investment, your best move maybe to pass up the “opportunity” and report it to the SEC Complaint Center.

For the best updates on how to avoid real estate investment scams visit: https://globaljusticefraudrecoveryhub.com/or send us an email:solutionshub@tutanota.com

Online investment newsletters

While legitimate online newsletters contain valuable information, others are tools for fraud. Some companies pay online newsletters to “tout” or recommend their stocks. Touting isn’t illegal as long as the newsletters disclose who paid them, how much they’re getting paid, and the form of the payment, usually cash or stock. But fraudsters often lie about the payments they receive and their track records.

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Fraudulent promoters may claim to offer independent, unbiased recommendations in newsletters when they stand to profit from convincing others to buy or sell certain stocks. They may spread false information to promote worthless stocks.

The fact that these so-called “newsletters” may be advertised on legitimate websites, including on the online financial pages of news organizations, does not mean that they are not fraudulent. To learn more, read our tips for checking out newsletters.

For the best updates on how to avoid real estate investment scams visit: https://globaljusticefraudrecoveryhub.com/or send us an email:solutionshub@tutanota.com

Online bulletin boards and chat rooms

Online bulletin boards, chat rooms and social media sites are a way for investors to share information. While some messages may be true, many turn out to be bogus – or even scams. Fraudsters may use online discussions to pump up a company or pretend to reveal “inside” information about upcoming announcements, new products, or lucrative contracts.

You never know for certain who you’re dealing with, or whether they’re credible, because many sites allow users to hide their identity behind multiple aliases. People claiming to be unbiased observers may actually be insiders, large shareholders, or paid promoters. One person can easily create the illusion of widespread interest in a small, thinly traded stock by posting numerous messages under various aliases.

Other online offerings may not be fraudulent per se, but may nonetheless fail to comply with the applicable registration provisions of the federal securities laws. While the federal securities laws require the registration of solicitations or “offerings,” some offerings are exempt. Always determine if a securities offering is registered with the SEC or a state, or is otherwise exempt from registration, before investing.

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Spam

“Spam” – junk e-mail – often is used to promote bogus investment schemes or to spread false information about a company. With a bulk e-mail program, spammers can send personalized messages to millions of people at once for much less than the cost of cold calling or traditional mail. Many scams, including advance fee frauds, use spam to reach potential victims.

Many of the frauds that show up on social media are not unique to the Internet. These frauds range from “pump and dump” schemes to promises of “guaranteed returns,” from “High Yield Investment Programs” to affinity fraud. To learn more about these frauds, see Types of Investment Scams.

For the best updates on how to avoid real estate investment scams visit: https://globaljusticefraudrecoveryhub.com/or send us an email:solutionshub@tutanota.com