Starting your investment journey is exciting. But it can be dangerous, especially if you’ve never done online banking before. When someone is new to the game, investment scammer want you to invest money right away.
This blog will explain the five main reasons scammers target newcomers. You’ll also be able to spot the signs before it’s too late.
Did You Know? Overall, U.S. consumers lost nearly $8.8 billion across 5.1 million reports of fraud in 2022. Source
1. They Count on Inexperience to Hide the Scam
Most new people don’t know how to check licenses, assess risk, or vet platforms. This makes them perfect targets for online investment scams.
Scammers make fake trading tools that look very real and well-made. These sites say you can make a lot of money with little risk and get paid quickly. It looks like a dream come true for a new investment. But there is no government control, a real address, or a way to get your money back after it is gone.
Many people fall for the scam and only find out when they try to get their money back.
If the site doesn’t have any rules or business information that can be checked, close the tab and leave.
2. Emotional Decisions Make You Vulnerable
People who are new to investing tend to let their feelings guide them. Scammers are aware of this.
They use fake testimonials, hype, and a sense of urgency to get people excited. They promise “guaranteed” returns or early access to stocks and crypto tokens that aren’t yet on the market. Once you’re emotionally hooked, it’s hard to step back and think about the offer.
Here are some words that scammers like to use:
- “Do it now or lose out!”
- “There are only a few spots left.”
- “Our AI picks always win!”
If you’re new to this, you might not know that these are classic warning signs. You might think you’re being invited to join an exclusive group, but you’re really just being lured in.
3. Tech Illiteracy Makes Fraud Easier
Digital scams rely on technical deception. If you’re not tech-savvy, it’s harder to recognise when something is off.
Scammers use techniques like:
- Cloned websites of popular brokers
- Fake apps on third-party marketplaces
- Phishing emails pretending to be official requests
These tricks are especially dangerous when you don’t know what secure authentication looks like. A cloned app may have the same logo, layout, and name as a trusted firm, but it quietly drains your deposits the moment you hit “submit.”
Power Move:
Always verify app downloads from official stores and cross-check company details on regulatory databases.
Trading platform scams use technical tricks. If you’re not tech-savvy, it’s harder to tell when something is wrong.
Scammers use things like:
- Fake websites of well-known brokers are used to trick people.
- Third-party app stores that sell apps that aren’t real
- Emails that look like official requests but are actually phishing emails
These tricks are even more dangerous if you don’t know what safe identification looks like. A fake app might look, feel, and have the same name as a real one, but as soon as you click “submit,” it steals all your money.
Power Move: Only download apps from official stores and ensure that the company information is correct on the databases that regulators use.
Common Traps in Online Investment Fraud
Scam Tactic | What It Looks Like | What You Should Do |
Cloned trading platform | Looks like a real broker site, but it’s fake | Verify the domain and SSL certificate |
Fake advisor outreach | DM or call offering an exclusive investment opportunity | Ask for proof of license |
Crypto-only withdrawal | Payouts only in Bitcoin or Tether | Avoid if no option for fiat currency |
No support or disclosures | Vague terms, no contact info or address | Don’t deposit, report immediately |
New investors are prime targets for scammers. Discover the top 5 reasons why beginners fall victim and how to protect yoinvestments.22560595260948925847328328535063/04854/68/4+8
4. Social Media is a Scammer’s Playground
If you’re new to crypto, you probably follow finance, celebrities, or crypto feeds on Instagram, YouTube, or Telegram.
This is precisely where many trading platform scams begin.
Scammers say they are businesspeople who made themselves. Their pages have many maps, pictures of “success stories,” and fancy cars. Then, they send direct messages (DMs) to offer help or “passive income strategies.”
You started by putting in small amounts. You even make fake money for a short time. But what if you want to get real money? Be quiet. Your account could even be locked, which is worse.
It’s very important to know that most of the time, people on social media who offer free financial advice are trying to scam you.
5. They Know You Don’t Know What To Do After
Scammers like new users because they know most of them won’t fight back. It might make you feel bad when you lose your money. You might even think it’s your fault.
That quiet makes it easier for con artists to hide.
People who are new to recovery may not know where to report crimes, how to keep track of digital transactions, or how to get in touch with people who work in recovery. Even fewer check investment scammer list sites or monitor regulatory updates.
If the target doesn’t do anything, the con artist moves on to the next one and uses the same trick.
That’s why it’s so important to teach and write.
Don’t Let Scammers Win — Fight Back With Help
Getting that money took a lot of work. Don’t let an investment scammer make you feel helpless. You aren’t dumb if you fall for a scam; it just means the scammer was good at tricking you. They get better at it every day.
The good news is you can fight back, and you’re not the only one.
Report Scammed Funds helps people who have lost money through online investment fraud transactions, keeps records of proof, and gets in touch with recovery services that are legal and regulatory. You can lose money in a lot of ways, such as through crypto, fake brokers, or high-yield investment plans. We can help you rebuild trust and get back what you deserve.
It starts by reporting the scam. Take the first step now.
FAQs
Fake trade platforms, unlicensed advisors, and crypto Ponzi schemes are the most common online investment scams that target new users.
What kinds of online business scams go after people who are new to the field?
How can I tell if a trading tool is real?
Before you send money, make sure the website is legal, has a safe URL, and that the license number matches the numbers the government gives.
Why do most investment scams target people who are new to investing?
Scammers can easily trick people who are new to something because they have little experience, make decisions based on how they feel, and don’t always see warning signs.
Where can I find a list of names of people who are trying to scam me out of my money?
Learn more about known scammers and their platforms by using certified databases, financial authority sites, or sites like Report Scammed Funds.
Can you report online investment scams and get your money back?
Yes, please let us know right away. If they act quickly, experts can keep an eye on transactions and make it more likely that stolen investment money will be returned.