What should you know about social media fraud?

What should you know about social media fraud?

by | Feb 8, 2020 | Firm News

Florida investors often rely on social media and the internet. After all, this is where the newest innovative ideas are born and shared. But these platforms are a double-edged sword. While you can use them to find ideas worth investing in, you can also fall prey to scams. 

The U.S. Securities and Exchange Commission takes a look at social media fraud. In particular, they look at how social media fraud affects investors. Fraudsters can create websites that are almost impossible to distinguish from legitimate ones. Some investors are not tech-savvy enough. Fraudsters trick them into thinking they are putting money toward a real product. In reality, their money is being stolen by faceless burglars who will pack up and vanish without a trace. 

Fraudsters use an array of social media platforms and strategies to trap investors. They make websites and promote themselves as if they offer legitimate services. Entire teams work toward making their presence on social media sites seem authentic. But there are some ways you can spot frauds among the real deals. For example, fraudulent investor scams are often aggressive. They will reach out to others, making inflated promises or spreading false information. They may also rely on spam emails or messages. Though many people can identify spam, those who are unfamiliar with it may end up losing money. 

It is important to stay safe when traversing the internet. Know how to browse in a safe and efficient way. Understand how to identify real and unique offers from fraudulent ones. This helps all investors from suffering missteps that could cost them.