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How To Avoid Online Scams With Investments

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Investing money to make money always come with risk. If you’ve got a high-risk threshold and have therefore a lot of business investments, then your return can go either way. This is the rollercoaster ride risk-takers enjoy. The potential for a healthy profit is the core driver, and the risk is somewhat mitigated with the right investment strategy.

Speculators are comfortable with going with their gut instinct or intuition alone. In contrast, most investors will rely on other mechanisms to get the best outcome, including avoiding trading scams and hackers.

Online security starts with you and your device, Internet access and password security. Make sure you’re not accidentally allowing malware to infect your computer. Run antivirus scans and always apply software updates. The topic of online security is well covered on BusinessBlogs, so in this article, we look at how you can start off well with your investments


Avoid putting all your money into one type of investment or one stock. All your eggs in one basket is a risky strategy. Many investors get stuck with one asset class as it’s the only investment they understand. The answer here is to learn more about different asset classes and types of investments. Learn about investing online, join discussion forums, read articles and follow investors like Warren Buffet.

Spreading the risk prevents you from losing everything you’ve invested if a stock goes sour or there is a stock market crash, and all you had were stocks. When you are well diversified, your assets will include property, businesses, stocks and so on. Investing in businesses and property is the stable of high profile investors, and if it works for them, it should also work for you.

Have an Emergency Plan

Nobody wants to think about something going wrong with their business investments. But, as we have discussed, there is always a risk with everything you do including leaving your money in the bank that action is risky insofar as it may give you a negative return if interest rates are negative. Negative interest rates are a reality, and it can cost you to have your money in a bank.


With next to no positive return on money left in banks, investors are taking risks with investments they have no prior experience with nor the knowledge to make the right calls.

When you’re inexperienced, you’re a target for scammers. For instance, scams can look very legitimate and lure you in. Before you know what has happened, they have scammed you out of a lot of money. Common investment types that are used for scams include:

  • Ponzi or Pyramid
  • Forex
  • Offshore investing

Investopedia has a list of the all-time stock scams so far and there will be more.

However, even the most astute investors can get caught out, so if this happens, you need to have an emergency plan and experts to get you through it.

With Payback, their service is helping people who have been defrauded online in some way. Internet fraud is big business, and now there is a sector specialized in working with victims to the right the wrong.

A lot of people assume all of their money is gone, and they are never getting it back. But this is not always true. The criminals do get caught and their assets liquidated. The fight is then on to get what you can, and Payback can fight to regain the money you lost through fraud.

Be Sensible and Trust Your Gut

The number one thing you can do when you are thinking about your business investments is to be sensible. Do not make any quick and rushed decisions.

Take your time with your next move. Listen to the experts and do as they do. A lot of people ignore their intuition, while others rely solely on it. Do neither, use it but always exhaust all measures mentioned in this article to ensure your investment decision works for you and your business.

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