personal finance

Common Investment Scams Strategies

Almost everybody nowadays wants the opportunity of participating in trending investment schemes, which gives scammers the ability to make use of this weakness. Investment schemes are one of the popular methods of making money. These schemes involve you to invest a certain amount of money while waiting for a quick return. Even though the use of cybersecurity protocols have enlightened people about the dangers associated with participating in investment schemes.

Common Investment Scams Strategies

However, for scammers, this is a golden opportunity for attracting potential customers who will be able to pay a huge amount of money. Their plan is getting you to give them money while letting you think you are participating in a legit investment scheme. According to popular investors, this method has been going on for a long period, even before the introduction of cryptocurrencies, the only thing that changes is the strategies that scammers use in dubbing people.

If you’re still wondering about the common investment scams strategies, here is a list of the top trending strategies that scammers use, which include:

Forex Scam

Since the introduction of Forex as a portmanteau of foreign currency and exchange, the trading of Forex has popularly reached its peak with the help of investors. Forex as the foreign exchange market has been one the decentralized and over the counter market for trading currencies globally. This has made it an important tool for scammers in deceiving their prey. Scammer’s purpose often goes with the aim of getting the investor to send them money. 

Most scammers might claim that they have the best secret method for trading currencies, while others claim to be good at trading and will persistently deceive people to send them money so they can trade for them. The only solution for this scam strategy is declining the request of people asking money to trade for you or sell trading strategies to you. 

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Ponzi or Pyramid Scheme

Ponzi scheme is one the trending investment scam, where a company emerges with the aim of doubling any money invested at a certain period after getting other people to invest. The things about this type of scam are that there’s no actual investment because the money that new investors pay is what they will use in paying old investors. 

Scammers making use of this strategy aims to get investors rolling over their money for a long period until the plan unexpectedly closes the plan, and all investment funds from investors lost or forfeited. So, beware of what you invest your money on and avoid Ponzi investments. If possible make use of cybersecurity protocols to keep your information secured.

Boiler Room Scam

Boiler room scam is a type of scam where the con artists convince an investor to buy shares that will be worthless to sell. Scammers who participate in a boiler room scam use fake details to contact their investors through email or phone. Unlike other types of scam strategies, they will be eager to convince the investor that they are offering the best deal. They always use the protocol of asking their victims to keep their conversations confidential, so that they will achieve their goal, which is getting you to send money.

Pension Scam

Pension is what most working-class people often depend on after their retirement as financial security, making it a valuable asset. Due to this, scammers find it valuable to be targeted with different strategies. Pension scammer’s strategy is getting people to transfer their pension assets to them, with the trick of them having an investment package, which offers a high return percentage. Just like other types of scams, persistence is what they use in getting people to fall for their tricks.

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Advance Fee Scam

The advance-fee scam is one of the most popular strategies that scammers use in getting their victims. They often come with the idea that they have a massive amount of money, products, or other valuable packages for you. The last part of the scam is always about you sending a small amount of money to receive a large amount of money, products, or valuable packages.


If there’s a type of scam that people have fallen for most of the time, it’s an investment scam. Scammer’s aim to get their prey to send them a massive amount of money through their desired method, which is always bitcoin nowadays. Making it possible for them to acquire the money without leaving a trace behind. So, it’s important to avoid performing transactions through cryptocurrencies without verifying the identity of the user on the other end. It’s important to make use of cybersecurity protocols in keeping your private information secured from scammers.

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