Lifelock Blog – Identity Theft Protection and LifeLock Reviews

The Internet can both be heaven and hell for investors. On the brighter side, Internet is the tool for investors to search for investment opportunities, make their money through online trading, and monitor their finances through online banking, stock market and more. However, this can also a convenient tool for fraudsters. So, think twice before putting your money at risk, as there are countless kinds of Internet fraud going around.
 
The scammers utilize the navigability, accessibility, and wide reach of the cyberspace. Netizens like you can easily communicate and exchange information with other netizens through web sites, bulletin boards and discussion areas as you won’t have to spend much effort, time and money. What’s more, sending information to a lot of people is possible with mass e-mails.

Fraudsters not only utilize this capability to send out their scam messages, but they also copy website appearances to create their own seemingly real and credible version. For unfamiliar investors, the difference may not be detected easily.

One vehicle for Internet fraud is the online investment newsletter. In recent years, these newsletters have scattered all over the space, featuring companies and recommending stock picks. Some companies actually pay people to write and recommend their stocks.

Although legal, security laws, like in the United States, require indicating the name of the company who paid them, the payment amount, and kind of payment. However, what they do instead is to lie about the so-called “independent” research and track records they have monitored. These newsletters may then appear unbiased and very convincing for investors like you.

Another vehicle of Internet fraud relating to investment information is the bulletin board. Online bulletin boards are the venues for investors in sharing investment opportunities information. While some posts may be true, others may turn out “planted” or written by scammers. Fraudsters pose as investors who reveal “inside” information about a company’s new products and recent events. Be careful of them as they may pretend to be different forum members under different aliases.

Examples of Internet frauds are the Pyramid and the “Pump and Dump” scam. You surely have received one of those “Make Big Money at Home” email messages and pop-up windows. They will usually promise that your money will multiply in just weeks without you leaving your chair. Actually, this is just the online version of the pyramid scheme, where you can make money by recruiting another person into the business.

On the other hand, the “Pump and Dump” scam will lure you to buy a stock immediate and then sell it before the price lowers. This Internet fraud is created by scammers who pretend they are “insiders” in a company. However, in reality, they are paid promoters who make money by selling their own stocks when the price has been pumped up by their victims. Study stock information first-hand to avoid believing false information.

To protect yourself and your money from going down the drain with Internet fraud, it is best if you study financial statements yourself and analyze them. If you got an information about a new product, verify it. Check if suppliers or customers really transact business with the company. Also, know the people behind the company and see their records if they really have made the company boom. Protect your investment and protect your identity.  Get LifeLock identity theft protection. Here at LifeLock we guarantee your protection.