Spotting Scams — Notice The Red Flags
There are so many scams out there now that it’s hard to navigate your way through them or to even know what you should be looking for. So then, let’s cover a few examples of scams and several red flags to watch for to help you avoid being scammed yourself.
Timestamps:
00:00 Intro
00:58 Scams
04:20 YouTube Comment Scams
07:40 YouTube Ad Scam
10:20 Forex
14:41 Trade Signal Groups
21:02 Red Flags
35:02 Final Thoughts & Outro
*Disclaimer: None of this is financial advice and this is purely for entertainment*
Examples Of Scams:
· Social media comment threads about trading success — They ask you to contact their mentor for help.
· Fake YouTube live giveaway — Pretend to be an authority like have Vitalik Buterin or Elon Musk talking on a panel they claim to be live and ask that you send crypto first then they will send more back to you.
· Signals Trading Groups — They could be getting their signals from someone else, the group may be big enough to make signals work, or they are just getting lucky in a bull market, but it’s not sustainable or reliable.
· Forex Trading — Forex may be legitimate, but most things related to Forex courses, trading groups, and Forex investments are scams.
Red Flags to Watch For:
· They only accept crypto as payment for something non-crypto related like Forex.
· They want you to contact someone else and they are advertising for them for free.
· You have to send money first.
· They are doing so well, that they’ve decided to build a course or something you have to buy in order to gain access to their “secrets.” — They are most likely making most of their money off of you.
· They guarantee results.
· The results they say you should expect are unrealistic.
· Claims of getting rich with little to no work involved.
· Only shows social proof and not real proof.
· They are doing it “out of the goodness of their heart” and have nothing to gain, but you still must pay.
· It’s based mainly on referrals.
· You cannot withdraw money anytime you want to — Usually they don’t let you know until you’ve started.
· They need more money after you start — Usually only let you know after you’ve started to trap you in the sunk cost fallacy.
· Almost any email offering you free anything or simply any email from anyone you don’t know reaching out to you specifically.
· You are vulnerable or desperate.
· They offer to let you pay in an unorthodox way like gift cards.
· The transaction must happen right away.
· They want to perform the transaction in an unusual way that benefits them.
· They are not public-facing and cannot be reached easily or at all.
My Recommendations:
· Do not look for get rich quick schemes or you will attract scams.
· Aim to build wealth long-term to avoid scams.
· Always do your own research and always have a healthy dose of skepticism.
· The dunning-Kruger effect is real and people who tend to know very little about something believe they know a lot and thus make very uninformed decisions.
· Stick with the blue-chip stocks and well-known cryptocurrencies to avoid these issues entirely.
· Take promotional and sponsored content with a grain of salt. More importantly, watch out for content that is promotional and does not disclose their sponsorship, that is illegal and harder to spot.
Have you ever been scammed? Am I missing any red flags for scams? What’s the best way to avoid scams? What scams have you seen lately? Let me know what you think about this in the comments below and don’t forget to subscribe!
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