Investment Scams

How to Recognize a Scam - Investment Scams

In this short guide, let’s take a look at a few criteria allowing us to differentiate if a Cryptocurrency trading website is likely to be legit or fraudulent. We hope you find this tutorial useful, for any question let us know!

1. The first step is to check if there are any 'payment proofs' and if so, to verify them.

2. Then, our next step is to check to see if the site makes any claims of how long they have been running, and compare it to when the domain was registered.

NB: Most scams already fail at this point.

3. I check the site social media channels with respect to how long they have been online and how many user posts they published. Scammers have learnt to register their domains long in advance so comparing domain age against first evidence of being online is very important.

4. If the owner information is hidden it does not always mean it is a scam, but it does raise a red flag, especially if they claim to be a registered company.

5. I verify their company registration if applicable. When it comes to online investment, if the service is offered by a registered company, they would usually need to register with a regulatory body as well (depending on the country). If they are not, but should be, they are definitely a scam. Accuracy and legitimacy of information are checked by regulatory bodies, not by company registrar.

6. Visa, MasterCard and PayPal offer a certain level of consumer protection. If a site accepts these forms of payments they are usually legitimate. Although, I have found many sites that say they accept Visa/MasterCard, which actually do not.

7. If there are any photos/images, I do a Google search of the image to see if it was taken from or used somewhere else.

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