Three Fintech Scams You Should Be Aware Of

The expanding fintech business is always looking for new methods to safeguard customers from scammers, hackers, and fraudsters. Payment fraud assaults on fintech goods increased by 70% between 2020 and 2021, with a 200% increase in the sector of digital wallets and a 140% increase in cryptocurrency exchanges. With this in mind, it is important that consumers must understand how to protect themselves.

Here is a comprehensive guide to these articles:

The first sort of online fraud traders should be wary of is phishing, which typically takes the form of an email from a business or organization you should trust, such as your bank, a broker, or a payment system. This email seeks to steal your personal information, such as bank card data, or to trick you into installing malware, after which it will demand a ransom to decrypt your files or unlock your system.

This is how it looks:

Another sort of hack is a clone of the original broker or another financial firm designed expressly to defraud inattentive internet consumers.

Such sites may only differ from the original by a single letter in the web URL (for example, easyinvesting.com and easylnvesting.com with ‘i’ and ‘l’ looking virtually identical), with substantially or totally identical content. However, when you make a deposit, the money—along with your bank card information—is sent to criminals.

Copycats are often reported to regulators and brokers. However, one must be cautious and double-check everything before making a deposit.

The third sort of internet fraud is the creation of a one-day scam firm, such as a Forex broker or a cryptocurrency exchange. The firm exists to trick naïve customers into depositing money and then either stealing it all at once and leaving the following day, or charging exorbitant trading costs that quickly drain your wallet even if your trades are profitable.

A phony broker is easy to recognize. Such firms seldom have a lengthy history of offering financial services, and they are rarely acknowledged in the media. Scam brokers do not acquire recognition from reputable international media or organizations.