The internet offers a plethora of avenues to earn extra income, acquire new skills and grow your business. But it also attracts scammers who prey on novice users. Understanding what to avoid when you’re first starting can prevent you from losing both time and money. Here is a list of typical online scams that novices should be on the lookout for.
1️⃣ Get Rich Quick: If they tell you that you can make a lot of money with little to no work, it is generally a scam. It usually takes a lot of time, learning, and consistency to make any money at all online.
⚠️ Warning signs:
- “Earn $1,000 today” or “Make money with no experience necessary” or “Guaranteed profit.” If it sounds too easy, it most likely is.
2️⃣ Fake Online Job Registrations: Many scammers will post fake jobs online and charge a fee or require personal information to register. Once you pay, they disappear.
⚠️ Warning signs:
- Request for payment before you can start; non-existent company website; unprofessional and inadequate communication. Legitimate companies pay you money, and you never pay them to work for them.
3️⃣ Investment Scams: These scams claim to give you high returns with no risk, primarily involving forex and cryptocurrency.
⚠️ Warning signs:
- “Receive double your investment within 24 hours” and the absence of proof that a business is operational. A sense of urgency to act immediately. All legitimate investments come with a level of risk.
4️⃣ Phony Instructors and Courses. People offer expensive classes that are not worth anything as the course is generally focused on how it is marketed rather than on how the class will actually provide instruction.
⚠️ Warning Signs:
- Lack of reviews/testimonials from real students.
- Only showcasing luxury lifestyle rather than showcasing knowledge/experience.
- No clear lesson objectives for the course.
- An actual instructor should teach you something rather than show you off.
5️⃣ Phishing/Hacking E-mails
Scammers send e-mails and/or text messages that appear to come from banks, PayPal, or social media sites and ask for your personal information.
⚠️ Warning Signs:
- Links that look suspicious.
- Asks for your password or account verification codes.
- Urgency and threats that have anyone looking over their shoulder.
- Never provide your login information to anyone.
6️⃣ Fake E-commerce Suppliers
Fraudulent websites will take your money and then fail to ship the products.
⚠️ Warning Signs:
- No way to contact them.
- No refund policy.
- Prices below market value for similar products.
- Pyramid Schemes & Referral Programs
- Pyramid schemes and referral programs are based on recruiting rather than selling products.
- History: Recruitment is the main means of income.
- There is no real product/service value.
- There is great pressure to recruit friends and family into the program.
- If you earn money by inviting others, not selling products, proceed with caution.
How to Protect Yourself Online
- Before you pay for anything online, do your research.
- Don’t rush into a decision.
- Be mindful of your personal information when dealing with companies online.
- Seek information from trustworthy sources.
- Ask questions before you sign up for anything.
Final Remarks
- The internet is a powerful tool but should be used wisely for maximum benefit. Newbies typically lose money because these programs appear to be legitimate opportunities when, in fact, they are scams.
- Learn first. Verify twice. Make sound decisions.
