As long as the internet exists, there will be online scams. Of course, fraud and deception have existed since ancient times, but the internet is particularly suited for these illegal activities. Online, it's easy to scam money, easy to impersonate others, easy to disappear, and easy to cover one's tracks.

Unfortunately, many defrauded investors don't know how to report online fraud. Additionally, they may be reluctant to come forward and draw attention to the fact that they've been scammed. Worst of all - and most regrettably - scammers often exploit people's unwillingness to publicly admit they've been deceived.

It's better to be prepared. Understanding the most common types of scams and the tactics scammers use can help you avoid many of the inherent dangers in online transactions. This guide will tell you what to watch out for. If you unfortunately fall victim to a scam, read on to learn how to report online scammers and some less obvious solutions that might help you recover your funds.

Different Types of Trading Scams

Trading scams come in many forms, but they all have one thing in common: the illegal theft of your money. When you're considering online trading, be wary of these scams:

Unethical brokers engaging in unfair or illegal trading, charging exorbitant fees, and making it extremely difficult or impossible for you to withdraw funds Fake companies that are here today and gone tomorrow. Such trading companies are often based overseas and hold fake or stolen registration information Suspicious investment schemes, typically involving old favorites like precious metals, gems, oil and mining, or the latest "hot" markets like cryptocurrency, high-tech, green energy, and the U.S. legalized marijuana industry Expensive automated trading software packages or robots (especially for forex trading) that fail to deliver the promised returns Fake financial experts who charge expensive subscription fees in exchange for professional advice that turns out to be worthless

It's important to note here that just because a company is well-known and high-profile doesn't guarantee its integrity. There are numerous examples of large companies being caught engaging in improper conduct, either due to employee misconduct or, more worryingly, illegal policies approved at the highest levels.

No matter where you invest, it goes without saying that you should always conduct research and due diligence.

How to Identify Scammers

Some scams are so obvious it's a wonder anyone falls for them. Like shoddy websites, poor grammar, badly written emails, or seemingly distressed billionaire royalty!

For every investment opportunity, doing your homework is crucial. Even the most cursory research should be enough to sound alarm bells when necessary. Always read online reviews, Google the company name, check employees on LinkedIn, confirm whether the company is properly licensed and regulated, and verify that the website has an actual physical address associated with it. If you can't be bothered to spend a few minutes doing this kind of research, you're asking for trouble.

But if all scammers could be spotted so easily, there would be no need for an article like this! The unpleasant reality is that some scams are extremely sophisticated, clever, and seemingly legitimate, making them much harder to detect. But even then, there are usually telltale warning signs, such as:

Fake celebrity endorsements: Ask yourself why a famous multimillionaire would want to be involved in a trading scheme Unbelievably high return promises: Every investor knows the dangers of pyramid and Ponzi schemes, but people still fall for them Limited-time offers: Be wary of programs that encourage you to act immediately or miss out, as they may cloud your judgment Fake websites that cleverly mimic the look and feel of authorized brokers, or steal real traders' identities Beautiful people enjoying wonderful lifestyles full of yachts, sports cars, and mansions

Understanding the tactics used by more sophisticated scammers will make you less likely to fall for their schemes.

How to Report Online Scams

If you suspect you've been a victim of an online scam (for example, you want to report a forex scam), your first course of action should be to contact the relevant company, as in some cases the company itself may be unaware of the scam. If this approach is unrealistic or impossible, then you should contact the relevant national financial regulator, especially if the company is registered there.

In many countries, regulators typically enjoy a good reputation and have a solid track record of cracking down on unethical traders and brokers. However, sometimes regulators are powerless, or may be unable or unwilling to act for some particular reason: for example, political interference, or lack of up-to-date legislation.

In other jurisdictions, particularly emerging markets, light regulation is often the norm. In these cases, you may find you have little recourse, especially if you're trading in a foreign country outside your own.

If your interaction with regulators proves ineffective, you might consider contacting the national media to highlight any injustice, or launching an online campaign to draw attention to unethical business practices through reviews.

What to Do Next If You've Been Scammed

You've contacted the scam company, the regulators, and the media, and left scathing critical reviews online. But nothing has changed. You still can't get your money back, and the scammers are getting away with it. It's all over, right?

Actually, no. If you've exhausted the above options, you have another course of action available, and this one has proven very effective. Companies like PayBack offer specialized fund recovery services that can help you get back what's rightfully yours. The service is fast, efficient, confidential, and affordable. Faced with experienced legal and financial professionals, many scammers quickly succumb to the pressure.