Scams and Fraud

International fraud can take many forms. Today, most international fraud is committed over the Internet. For example, you may receive an email claiming that you won the lottery or that a distant relative left you money. If you pay a fee to the person who sent the email, then you allegedly will get your money. Of course, there isn’t any money for you. Instead, you have become the victim of a scam. To report international fraud, gather evidence of the fraud and report it to an appropriate agency. Reporting International Scams to EConsumer Visit their website.  EConsumer is a partnership of 36 consumer protection agencies around the world. You can file a complaint at their website. EConsumer will then analyze the information and forward it on to the appropriate government agency. You can visit their website at www.econsumer.gov. Choose your complaint subject.  In order to file a complaint, you must identify the general nature of the fraud. You report fraud by category. The categories are: Complete a complaint.  Once you click on a subject, you will be asked a series of questions to narrow down your type of complaint. You will then be asked to provide: Update your complaint, if necessary.  You will receive a reference number once you file your complaint. You can use this number to update your complaint, if you need to.For example, you may have additional information on the scammer which will help a government agency locate him or her. Related Articles Report online scam or fraud on IC3 Report online scam or fraud on Federal Trade Commission

Taking steps to protect your identity is extremely important as identity theft is one of the fastest-growing crimes worldwide. Your identity consists of delicate pieces of information such as your Social Security Number (SSN), credit score, public and criminal record, and your personal information such as name, address, and date of birth.  When your identity is compromised, thieves can use your stolen personal information to access your bank accounts, open credit in your name, and even create fake accounts in your name. When an impostor has access to your personal information, your reputation can be harmed. Types of Identity Theft Common Ways Thieves Commit Identity Theft How to Protect Yourself If you have been scammed and need to know how you can get your money back, please visit the page How to Get Your Money Back From a Scam Related Articles How and Where Report Online Scam or Fraud Report online scam or fraud on IC3

Reviews play an important role in influencing whether potential customers or clients engage with the business. As per statistics, 86% to 90% of buying decisions are influenced by online reviews. They are also called ‘social proof’ and are the virtual equivalent of word-of-mouth promotions.  Website owners are well-aware of the importance of reviews for gaining the trust of potential customers. Many companies have review systems integrated within the website itself, which are called first-party review systems. Alternatively, customers can also leave reviews on external websites, which are called third-party review systems. Read on to know about the differences between the two. First Party Review Systems In first-party review systems, the reviews are collected and published directly on the website. This means that the website owner has control over modifying and deleting unfavourable reviews. Due to this, the reviews shown on the website itself may not be real and trustworthy. First-party review systems also allow the website owner to remove, edit or manipulate the order in which the reviews are presented. Therefore, positive reviews can be highlighted and negative reviews can be suppressed. These websites are not automatically cheating; however, the reviews are less trustworthy. Third Party Review Systems Third-party review systems are platforms which are not owned by the business and exist outside the website. Users can write reviews about their experiences on these platforms. Yelp, Google and Scamadaviser are examples of third-party review systems. In a third-party review system, the business owner does not have the authority to edit or delete reviews, or change the order in which they are presented. Therefore, reviews on third party review systems are more likely to be legit The reviews are managed by a third party which makes manipulation of reviews by the website owner more difficult. Website owners can only apply for removal or changing of the review via a third party. In case there is a deliberate attempt by angry customers or rivals to malign the company, the business owner can contact the platform to present their case and have fake reviews taken down. If their objections are not accepted, the reviews will stay up on the platform. Recommendation Since there are many different review sites and systems, we recommend users to check reviews on multiple platforms before making a purchase decision. Some of the popular review systems are as follows: Google Reviews Google is the most popular reviews service that exists right now. It covers all the businesses that are listed on Google Maps or Google My Business (GMB). Facebook and Other Social Media Sites With at least a third of the Earth’s population using social media, it is likely that the business will have its page on at least one social media platform. Users can write reviews instantly on the business’ page.  Businesses cannot moderate this review system, however, do not trust it 100% since it is easier for people to spam on social media. TrustPilot TrustPilot has established itself as one of the key third party review services. It is constantly expanding and covers all types of businesses.  Trip Advisor It is the most popular review site for hotels, restaurants, flights and everything related to traveling. Many websites use Trip Advisor reviews to showcase the satisfaction of customers with their services. Other smaller review systems Ausgezeichnet.org                    Bazaarvoice                    Bizrate           eKomi                                        E-Komerco                      Feedback Company                  Feefo                            Hardware.info                  Heureka.cz        KiyOh                                        Klantenvertellen               Kuchikomiking.jp           Osaifu.com                                Poulpeo                           PowerReviews          ProductReview.com.au             ResellerRatings               Reviews.co.ukReevoo                                     Shopper Approved           ShopVote.de ShopAuskunft                        StellaService                    TrustedCompanyTrusted Shops                          Trustpilot                           Verified Reviews      Yopi.de                                   Yotpo                                Zoorate Of course, the reviews on Scamadviser, too, cannot be directly edited, removed or manipulated by the website owner. A word of caution; while the website owner cannot directly manage the reviews shown on these platforms, manipulation still happens as website owners add reviews themselves, pay others to leave positive reviews and try to remove negative reviews at all costs (often threatening these review systems with lawyers). Therefore, users are advised to use their own judgement regarding the authenticity of reviews and not take them at face value. To know more about how you can recognize whether reviews are fake or real, please read our article on How to Recognize Fake Reviews. Reviews are a crucial factor to judge the trustworthiness of a business, but they should be considered in conjunction with other factors that may signal that a business is a scam. Read our article on How to Recognize Scams to learn about the signs to watch out for. Related Articles How to Recognize a Scam Safe Ways to Pay Online I’ve Been Scammed, What Now? How to Get Your Money Back From a Scam

If you can get your money back depends on three things:  If you paid via Wire Transfer, Bank, or Cryptocurrency, chances of getting your money back are unfortunately very small. What are Your Rights? In most countries, you have the right to return a product within 7 (most Asian countries) or 14 days (in Europe). For services (software, movies) and certain goods (food, lingerie, etc.) different rules may apply.   In nearly every country you are legally protected from being scammed. Do not feel ashamed, it happens to nearly everybody at least once. As a consumer, your national laws apply, even if you bought from a company abroad.  Step 1: Build up your Case  You first have to file a complaint with the online store or service provider.   Make sure you keep a copy of all transactions and correspondence (invoices, emails, WhatsApp, Facebook messages, etc.).  Only if they do not reply at all within 3 working days or you are (nearly) certain you got scammed can you take the next step.  Clear signs of scams are: In these cases, do not wait and go to step 2 immediately.  Step 2: File a Complaint  Make sure you file a complaint as soon as possible (time matters!) to get your money back with the right company or points of contact. If you paid: Do NOT work with Money Recovery Services  We DO NOT recommend working with Money Recover Services. These organizations, also called Asset, Debts or Fund Recovery companies are often scams themselves or dubious at best: We interviewed several Money Recovery Services. Their success rate is far less than 1% (but you still pay them).  

Realizing that you have been scammed can be infuriating and frustrating. It is not an easy fact to accept, but the quicker you do, the quicker you can take the necessary steps to improve the outcome of the situation.  Take a Breath and Relax! Before you take any action, it’s important to compose yourself.. Don’t panic or get angry. It can seem like everything has to be fixed as soon as possible, but sometimes taking a breath can help put things in perspective.  It may help to talk to family or friends. Nearly everybody gets scammed at least once. It is not something to be ashamed of. Scammers are adept at manipulating and taking advantage of unsuspecting people. They exploit people who trust them the most. There is no need to feel embarrassed or guilty. You are the victim in this case and aren’t the first person to get scammed! Stop Contact with the Scammer You should immediately cease all communication with the scammer. No amount of angry messages or threats is going to make them give you your money back. The scammer might even try to scare you into making more payments. It is better to block all communication channels than to continue being in touch and risk more exploitation.  Focus your energy on seeking the right kind of help, such as contacting law enforcement authorities, to minimise or reverse the damage.  Check Your Online Security If you believe you’ve given personal details or financial information to the scammer, make sure to change your passwords and inform your bank or credit card company. Scammers with access to your personal accounts might contact people in your list and try to scam them too by pretending to be you.  Secure your accounts and inform your bank/credit card company as fast as possible to prevent the scammer from taking any more of your money or accessing your personal accounts. Contact The Payment Provider If you have been a victim of a scam, it is important you get in contact with the payment provider (eg. PayPal or the credit card company) or banking institution involved in the transaction. They will have a dedicated fraud adviser who will be best equipped to help you.  There is often a chance you can get your money back! There might already be complaints made by others against the same scammer. Credit card companies and banks are well aware that online scams are commonplace and will assist you, provided you share the required information, such as proof of purchase.  Report the Scammer! You can get legal help against the scammer and prevent others from falling into the same trap that you did. Report the scammer  by leaving a review of your experience in comment section. The more information you provide, the more helpful it will be. Don’t share sensitive information such as the transaction details, but be sure to detail how you came across the website, how the scam unfolded and how much money you lost. It can even be cathartic to share your experience with others. There are specialised anti-cybercrime agencies to help people in your situation. Not only can you help stop the scammers by informing them, but they can also provide you with support on what to do with helpful resources for you to use. We have compiled an extensive list of (country-specific) links to help victims report scams to the proper authorities: How and Where to Report a Scam The Next Steps Once you have fallen for a scam, your name may be on a ‘sucker list’ shared among scammers. Other fraudsters might try to approach you, sometimes stating they want to help you get your money back. Only seek help through the right channels and never share any personal or financial information with strangers.  It is crucial that you do not stay silent, feel self-pity or fret over having lost money. Even if you don’t get your money back, consider it an expensive life lesson.  Cybercrimes are thought to be rare and minor as most victims of online scams are afraid to approach authorities and speak about their experiences with others. By talking about it publicly, you have a chance of obtaining your money back and getting the emotional support to get over the trauma of being exploited.  The resources below contain helpful tips on getting your money back and tips to avoid falling victim to other kinds of scams. It is much simpler to arm yourself with the knowledge to avoid scams than it is to deal with scammers after losing money.  How To Get Your Money Back How To Recognize a Scam How to Protect Your Identity Online

There are thousands of methods being offered to pay online. Some are country-specific (like Ideal in the Netherlands and Boleto in Brazil), others are offered worldwide (like VISA, MasterCard and Paypal). Which payment methods offer the best consumer protection? In this article, we do not focus on ease of use or level of privacy, but only on whether the payment method protects your rights as a consumer. As you will see, the chance of getting your money back differs strongly depending on the payment method used. Relatively Safe Payment Methods No payment method is completely safe as there is never a 100% guarantee of getting your money back. Cases include non-delivery of the service or product, the wrong product being delivered or the package being stolen/broken during transport. However, the below payment methods are the most secure for you as a consumer: Credit Cards Credit card providers such as Mastercard, Visa and American Express offer consumers the possibility to start a ‘chargeback procedure’. This allows you to request your money back. However, the odds of the transaction being reversed depend on the nature of the transaction and the policies of the credit card provider. Some offer a nearly ‘no questions asked’ protection, while others force you to go through lengthy procedures.  PayPal This payment solution is actually a kind of ‘wallet’, a topic that is discussed in detail below. PayPal is listed separately because it is, by far, the most popular payment method worldwide. It offers convenient transactions and some level of protection against fraud. However, the company does not guarantee that you will get your money back if there are problems with the order. Just like with credit cards, you have to prove you were scammed and the procedures can be complicated. Payment After Delivery Cash on Delivery (COD) is a popular option for online purchases, especially in developing countries. There are several companies that offer the same service online ie. they only transfer the money after you have received the goods. Examples are AliPay, Afterpay, and Klarna. These payment methods are relatively safe as the money remains in a third party account till you have confirmed that you have received the goods or service to your satisfaction. The disadvantage: not all merchants offer this kind of payment method as the risk now lies with them and they are often expensive for the online store to use.  Less Safe Payment Methods Debit Cards In a debit card transaction, the payment amount is directly deducted from your account. This is not the case with most credit cards where you actually lend the money to the vendor from the credit card company. In many cases, the money is immediately transferred to the bank account of the recipient. Debit cards nowadays have a chargeback facility. However, if the recipient withdraws the amount immediately, the debit card company or bank is unlikely to be willing to pay it back to you. Usually, the only circumstance in which they might give back your money is if you can prove that your account was misused or hacked to carry out unauthorized transactions. Digital or e-Wallets There are hundreds of digital wallets offered by companies big and small. Examples of e-wallets include Venmo, Apple Pay, Baidu Wallet, PayPal, Google Wallet, Payoneer and Skrill. The main benefit with wallets is that you cannot take more money out of them then you put in (unless you connected them to your credit card or bank account). The level of consumer protection varies as per the policies of each. Compared to credit cards and PayPal, it might be more difficult to get your money back if the payment was made using an e-wallet. Unified Payment Interface (UPI) UPI is a payment interface which enables bank transfers in a more convenient manner. There are several payment apps which have integrated UPI including GPay, Amazon Pay, PayTM, as well as payment portals such as Citrus, RazorPay and UPay. The payment is either made into a bank account of the recipient through an intermediary. Payments made using UPI can be reversed if you approach the intermediary, for example, the customer support of GPay or Amazon Pay. The procedure will be similar to that of reversing a debit card transaction.  Least Safe Payment Methods Cryptocurrencies (Bitcoin, Ethereum, etc.) There are thousands of different digital currencies being used online and new ones are regularly cropping up. While these payment methods offer a high level of privacy, there is also often no way to get your money back. Due to the secretive nature of transactions, these kinds of payment methods are often used on adult, dating or gambling websites. There is no reason you should be forced to use this kind of payment method by any store or service. Any website which insists on payment through cryptocurrencies should be considered suspicious. Net Banking In this case, you directly transfer money from your bank account to that of the recipient. Few banks will pay back your money if things go wrong and the burden of proof is on you to prove that you have been scammed. Banks will go through a procedure to verify that that the receiving bank account is not legit (e.g. being used for money laundering or part of a crime syndicate) which can take several weeks. Unlike debit cards, net banking transactions don’t have a chargeback facility. Electronic Money Transfer Electronic money transfer services come with the same problems as bank transfers but magnified. The receiving party can just walk up to a local Moneygram or Western Union store and withdraw the money in cash. Therefore, the transactions are impossible to reverse as the payments are made using physical money. These organizations often refuse to take any responsibility and are unlikely to pay you back.  Gift Cards Scams such as tech-support scams and others involve payments which are to be made using gift cards. These kinds of cards don’t store any user credentials and can be used online or offline. While they do provide

Check newsjirga.com ScamAdviser’s automated Trust Score gives an analysis of a website based on more than 40 different criteria. It gathers publicly available data in one place to help you make a well-informed decision when it comes to committing with your money online. Think Logically If an opportunity of making easy money looks too good to be true, the chances are high that it is not legit. Do not forget to think twice and double-check things. Even the best investors in the world rarely create more than 20% wealth in a year. Scammers promise profits such as 1% per day, which adds up to an annual profit of 365%. Generating this kind of profit is not realistic in almost any scenario. Check the Small Print Taking a look at the Terms & Conditions of the website can enlighten you in some cases. Some scammers do not even take the time to fill this part of the website. However, if it is filled, but seems to include inconsistencies, do not trust this website. Check the “Contact Us” Page Scammers usually do not incorporate valid contact information on their website, as this would lead to eventual prosecution from law enforcement. If no physical address or phone number is available, turn back immediately. If information is given, verify whether it is genuine using services such as TrueCaller and Google Search. Often, it turns out that these details are fake or have been copied from an unrelated website. Social Media Profiles Does the website link to valid social media pages? Maintaining a social media presence can be time-consuming. Even if the company has social media pages, they may not be updated daily or at least a few times a week. A big red flag is if the self-proclaimed investment company has a profile on a website such as Instagram, but none on LinkedIn. Legitimate financial services companies do not have profiles on entertainment-based platforms such as Instagram and Facebook, instead opting for the more professional platform is LinkedIn.  Testimonials & Reviews  Does the website display testimonials by clients who claim to be happy with their investment? Beware, as it is also common practice for scammers to write fake reviews on their own website, to increase credibility. They often use stock images or images of random people and text that has been copied from other websites. The text and images can both be easily verified using Google Search.  Reviews on third-party websites are often faked too. Check the positive reviews closely. In most cases, they are written by new accounts with no profile pictures, or by accounts made specifically for writing paid reviews. If an account has a pattern of writing 5* reviews on several websites of the same category, it might be a fake account.  To know more about fake reviews, read the article First and Third Party Review Systems. Copycat Websites What does the URL of this website look like? A quick search on Google or Bing might reveal that it is a copycat website of a well-known legitimate company. Spelling & Grammar Errors Is the website content professional? Scammers are usually from countries where English is not the first language. As a result, their website content tends to be egregiously bad. Any legitimate company will ensure that its website is free of any spelling and grammar errors. If the content looks poorly written, there is a good chance it might be a scam. Financial License Cryptocurrency is not yet regulated in most countries and is even illegal in some. Scammers often claim to be legitimate by showing a UK company registration certificate. This means next to nothing because anyone can register a company in the UK for £12 in 24 hours. Firms providing financial services must be registered with a financial regulator such as the SEC in the US or the FCA in the UK.  Any Other Doubt? Don’t do it! A typical scheme used by scammers during investment scams is described below, by one of our users who unfortunately fell for it. When you open an account with [website], they will be pushing you to invest more by claiming you will gain a bigger profit. After some time, the account will show a profit, but you can never withdraw it. The system will instead force you to reinvest the initial capital and generated profit. Once you place a withdrawal request, they will block you from the Telegram group immediately and your withdrawal will be updated in the website as successful, even though no money will be transferred to your wallet. Pure scam, run away! We hope this article helps you, in case of any doubt or question, do not hesitate to write to us! For more information on how to spot scams, read the articles listed below: How to Recognize a Scam Safe Ways to Pay Online I’ve Been Scammed, What Now? How to Get Your Money Back From a Scam

A High Yield Investment Program (HYIP) is a type of investment scam. The name comes from the ‘high yields’ or enormous profits that are promised to investors, usually within a very short period of time. While they maintain a facade of being legitimate investment companies that make money by trading in commodities, stocks, foreign exchange, cryptocurrency and more, they are actually comparable to Pyramid or Ponzi schemes. This is because the only revenue stream for the company is the deposits made by ‘investors’. Money deposited by newer investors is used to pay the older ones and, of course, the owner of the company. Such schemes are considered fraudulent and illegal. Some HYIPs claim to be investment companies, mainly from the UK and London specifically. Their websites look professional with glossy marketing videos, high-end social media profiles, a core team of technical and financial savvy, experienced managers. Some make every effort to conceal the fact that there is no real service being provided, while other operators are quite open about it. To create an air of legitimacy, they provide information such as the number of days they have been operating, the interest rates they promise and the number of participants. All this information has a fair chance of being complete lies or half-truths). The profits for different programs range from 1% to 300% a day, which any active investor should know is ridiculous. HYIP operators typically use social media to appeal to victims and create the illusion of support from many consumers. On Scamadviser.com, we know a HYIP is active when we suddenly receive tens to hundreds of positive customer reviews for a new website in one or two days. These reviews are either paid for by the HYIP site or written by small investors trying to convince others to join, in order to gain referral bonuses. In the end, there rarely is a real company behind the HYIP scheme, although their owners try to convince visitors otherwise. How to Recognize HYIPs Most low-end HYIPs are set-up by one individual (called Admin) and are generally easy to recognize. They: High-end HYIPs are more elaborate and may have an entire team working on it from developers, designers, social media experts to online marketers. This makes them a bit more difficult to recognize as scams, but there are always lies that can be caught. To determine if they are a scam, checking company registration papers is usually not enough. These papers (often from the UK) usually turn out to be legit but of very young companies using dummy addresses. Checking the background of the board on Linkedin and Google Image search usually reveals that profiles are fake and the images used are of people completely unrelated to the company. Who Wins? Who Loses? It is estimated that 80% of the investors in HYIPs lose their investments. While HYIPs are clearly scams, people keep investing in them as the lure of quick returns is too tempting to pass up. We often get questions asking which HYIPs are safe. When we answer that none are reliable as they are all Ponzi schemes, we get denials or remarks that they are “still paying out”. The fact that the Admin of the website may at any time stop paying out is not considered relevant. InvestorsProtect summarizes HYIPs maybe best: “HYIPs are extremely risky […] they cannot be considered as an opportunity but a gamble game. If you don’t know what you are getting into, we strongly advise you to stop.” How to Get Your Money Back From an HYIP? That is unfortunately very often a big challenge. If you paid with a credit card or Paypal, please contact them to try to get your money back. HYIPs these days insist on receiving payments in cryptocurrencies. These are difficult to trace and nearly impossible to get back. Please visit the page How to Get Your Money Back From a Scam. Related Articles Read the following articles for more information about how you can stay safe from investment scams: How to Identify Cryptocurrency Investment Scams What Are Safe Ways To Pay Online? I’ve Been Scammed, What Now?