People have been investing in the stock market for many decades but sometimes there are scams which happen and as a result, people lose their hard earned money. Stocks trading scam can be easily identified if we know about the red flags. We at Scamchargeback offer complete advice on how to identify a trading scam and also help you get back the funds that you may have lost because of such scams.
Scams are common all over the world and the stock trading scam is the worst among all and recovering your funds is not at all simple.
These types of scams have led to a huge loss of money which was deposited by the investors and traders. Though this is not a very common scam still thousands of people suffer due to the act of virtual criminals.
Investing in the stock market is not a new phenomenon; people who are capable of investing money utilize this platform as a money multiplier. However, with increasing digitization, techniques of scams have also become modern and swift. You will not even know of losing your money. This makes it necessary to have knowledge for stocks chargeback.
Common Stock Trading Scams
Pump and Dump: This is a penny stocks fraud, where the criminals inflate the price of the micro-cap stocks by giving out wrong information to the investors.
The fraudsters then buy these shares in as many numbers as possible. They do it by sending messages like ABC Company is offering a bonus on penny stocks’ or ‘a large cap is buying 50% of that particular penny stock’. Their aim is to get a cheap penny in bulk and then ask the investors to buy that stock.
With this news such as these, numerous traders buy stocks of this company leading to the rise of such stocks. Generally, fraudsters sell these stocks when its cost reaches the tipping point. A proper planning in connection with stocks and know how on how to get your money back can help you to get back your lost money.
Fake or misleading messages in the name of brokers: There are many people who buy shares on the recommendation of the advisors or brokers. Trusting blindly on such brokers can be a recipe for such a disaster.
But, investors seek their approval and go ahead with dropping money or buy stocks and that’s how the scam takes place. Fraudsters send fake messages in the name of the brokers and insist on buying the shares. As the stocks do not originate from the real brokers, they eventually go for a free fall and investors lose a huge amount of money.
While there is no denying the fact that there are several issues related to stocks, there are also means to minimize such issues, if not totally but up to some extent for sure. Getting help from a professional chargeback company is the sure-fire way of addressing such concerns.