Financial Scams Were Peaking in 2020 – But Why?

We already know that 2020 has had its share of bad news, but sadly we’ve got some more coming your way. It turns out that this year has been record breaking in terms of financial scams committed, mainly online but also offline. Before we try to understand exactly why this has happened, let’s understand what this actually means – and we’ll focus on online scams.

For a while now, creative minds have been looking for ways to convince people to give them their money over the internet, with different promises of worthy investments and quick earnings. These financial scams usually come in the form of trade offers – an investment in a stock, a currency or even a commodity with hopes of getting rich as its value increases. They also promise investors quick profits and low risk, but none of this is delivered at the end of the day.

As long as there are people unaware of this bad system, the scammers will continue trying their luck (and we’re here to fight that). It is interesting, however, to understand why this year they seem to have had more courage and drive to commit their crimes. There are three main reasons for this shameful phenomenon, as we will explain.

  1. COVID consequences

The economic crisis, that was a result of the pandemic, left a lot of people out of their job. Restrictions and lockdowns caused many businesses to let employers go – or even shut down completely. Add to that the fact that all over the world people were instructed to stay at home, and you’ll get a recipe for soaring unemployment rates.

As governments failed to provide people with financial security, they were looking for ways to make ends meet – and quickly. The World Wide Web is a comfortable arena for scammers to operate in, and they know how to take advantage of people’s distress. By targeting the right crowd and presenting unrealistic projections of earnings, the crooks managed to bait quite a lot of innocent fish this year.

  • Volatile venues

Another consequence of the Coronavirus is instability in markets worldwide. Surges and drops come unexpectedly in stock and commodity values and that may seem like a deterrent from investing in them at first, but some experts will tell you that there’s a great opportunity here as well. The problem, once again, is with dishonest brokers who fool you into thinking they know exactly when a soar in value is headed your way.

But it’s not just about shares and commodities. A whole lot of forex scams have also been reported, and the system is the same – people are being told that the value of a certain currency is expected to rise dramatically and that they should invest in it ASAP. When the investors realize that it’s not going to happen, they are left with pretty much no one to talk to.

  • Crypto cravings

One form of investment that has definitely enjoyed revenues, despite the slowdown, is the cryptocurrency market. For those who haven’t heard of them, cryptocurrencies are virtual coins that are not related to any nation and therefore to any central bank or hard currency. While the value of these currencies tend to rise when actual currencies seem less trustworthy, there’s also a danger to investors here.

Estimates are that around 7,000 different cryptocurrencies are being traded today. While some of them are at soaring rates, like the Bitcoin, most are unknown and as volatile as regular currencies. This does not stop scammers from marketing them as promising investment venues for novice traders, who are left at the end of the day with no money and  one to turn to.

It’s in your hands

There’s also good news here: Along with the concerning rise of financial scams on the internet, there’s also a growing awareness of them, and caution against them. What we recommend is to first and foremost trust your instincts before providing your billing deals to any broker. If it seems suspicious, it probably is. If online reviews present a reality different from the picture painted by the trading website, this would be a good sign to opt out

If you have fallen victim to one of these scams, though, don’t give up hope. We’re here to try and return your money, and we’ve been doing just that for quite a while now with high success rates. All you need to do is fill out the ‘Free Case Review’ form on our website and we will arrange a consultation meeting at no cost, where we will present you with a plan and a price offer. But, most importantly, don’t be ashamed to approach us – you’re not the first and sadly not the last victim of these terrible people.

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