5 Investment Scams and How to Outsmart Them 🥷

Lately, we've noticed a bunch of fake accounts trying to copy us at EasyEquities. We want to make sure you know the real us and keep your investments safe and sound. Thanks to our internal cybersecurity team, we’ve gathered some essential tips to help you spot and avoid investment scams.

• Scammers use social media, forums, or messaging apps like Telegram to create buzz around a specific asset.
• They announce schedules for when to buy and at what price, driving up the asset's price and attracting unsuspecting investors.
• Once the price peaks, scammers sell their holdings, causing the price to crash and leaving other investors in the lurch.

• Scammers create websites and links that look identical to reputable exchanges, using similar logos, designs, and domain names. These fake websites ask for sensitive information such as login credentials, account details, or seed phrases. With this in mind, make sure to validate URLs. Use tools like URLVOID or Google Safe Browsing to check the legitimacy of a URL.
• Once users enter their credentials on a fake exchange, scammers access and drain their accounts. In this scenario, what you can do is to ensure two-factor authentication is enabled on all accounts for an extra layer of security.

• Insiders use non-public information to buy or sell assets before it becomes public, generating illegal profits.
• Once the information is public, the scammers have already positioned themselves to profit, often leading to a decline in stock value.

• Pyramid Schemes: Focus on recruiting new members, with earnings coming from recruitment fees rather than actual investments.
•  Ponzi Schemes: Generate returns for early investors using money from new investors. The scheme eventually collapses when new investors decline.

• Scammers promise high returns without disclosing any associated risks or potential losses.
• These schemes often involve investments in obscure or non-existent assets. Scammers may not be licensed or regulated, making it difficult to track them down if things go wrong.
• Limited information is provided about how the investment will generate returns, avoiding financial statements.

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