BUSINESS NEWS - Scammers have become more active on social media, trying to trick people into investing in Ponzi or pyramid schemes and crypto scams.

They promise significant returns, like doubling your money in a very short time. 

Some pay initial returns, enticing you to invest more until they stop paying you. Others disappear as soon as you’ve paid over your money.

Here’s what to look out for:

• Promises of very high returns in a very short time. For example, doubling or tripling your money in hours or a few days
• The promoter’s social media profile shows exotic overseas travel destinations, expensive cars and designer clothes
• Urgency to invest: scammers do this to limit the amount of time you may spend researching and thinking about the investment
• Anything sold as a “once-in-a-lifetime opportunity”  
• Promises of big rewards if you recruit new investors
• Professional-looking investment websites or crypto exchanges with little to no information about the company?
• If it is difficult to understand how the investment will make returns
• The promoter offers to help you with your first few trades and claims to have insider knowledge of the market

How to avoid investment and cryptocurrency scams:?

• Don’t send money to anyone who contacts you on social media asking you to invest
• Do your research and stick with what you understand
• Check if the investment platform is licenced with the Financial Services Conduct Authority (FSCA)
• Avoid sharing personal information until you verify that the investment is legitimate
• If promoters of start-up investments (venture capitalists) promise big returns without making it clear that there are significant risks, you should avoid them at all costs

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