As long as the Internet has existed, there have been online scams. Of course, scams and fraud have been around since the beginning of time, but the Internet is particularly well suited to these illegal activities. Online, it is easy to scam money, easy to pretend to be someone else, easy to disappear, and easy to cover your tracks.

Sadly, many scammed investors are unsure how to report online fraud. Additionally, they may be reluctant to come forward and draw attention to the fact that they have been scalped. Worst of all – and most regrettable – scammers often take advantage of people's reluctance to publicly admit that they have been scammed.

It's better to be prepared. By understanding the most common types of scams - and the tactics fraudsters often use - you can avoid many of the dangers inherent in online transactions. This guide will tell you what to watch out for. For those who have been unfortunate enough to be scammed, read on to learn how to report online scammers and some less obvious solutions that may help you get your money back.

Different types of trading scams

Trading scams come in many forms, but they all have one thing in common: they illegally steal your money. When you want to trade online, be wary of the following scams:

Unscrupulous brokers who perform unfair or illegal trades, charge high fees, and make it extremely difficult or impossible to withdraw your funds Fake companies that are here today and gone tomorrow. Such trading companies are often located overseas and have false or stolen registration information Questionable investment schemes, often involving old favorites such as precious metals, gemstones, oil, and mining, or the latest "next big thing" markets such as cryptocurrencies, high-tech, green energy, and the legalized U.S. marijuana industry Expensive automated trading software packages or robots (especially forex trading) that fail to deliver the promised returns Fake financial gurus who charge expensive subscription fees and then give you advice that is not from an expert

It is important to note that just because a company is reputable and well-known, it does not guarantee its honesty. There are many examples of large companies being found guilty of shady practices, either due to the actions of rogue employees or illegal policies approved at the highest levels.

It goes without saying that you should always do your research and due diligence wherever you invest.

How to spot a scammer

Some fraud schemes are so obvious that it's surprising anyone falls for them. We think of shoddy websites, poorly written emails with bad grammar, or apparently troubled billionaire royals!

As with every investment opportunity, it's critical to do your homework. Even the most cursory research is enough to set off alarm bells when necessary. Be sure to read online reviews, search the company name on Google, check out the employees on LinkedIn, confirm that the company is properly licensed and regulated, and verify that the website has a physical address associated with it. If you can't be bothered to spend a few minutes doing this kind of research, you're doing it at your peril.

However, if it were so easy to spot all scammers, there wouldn't be a need for articles like this! The unpleasant reality is that some scams are incredibly complex, clever, and look genuine, which makes them even harder to spot. But even so, there are often obvious warning signs, such as:

Fake celebrity endorsements: Ask yourself why a famous multimillionaire would want to participate in a trading scam; Promises of incredibly high returns: Every investor knows the dangers of pyramid and Ponzi schemes, but people still get scammed; Limited-time offers: Beware of scams that encourage you to act now or miss out, as they may be playing with your judgment; Fake websites that cleverly replicate the look and feel of licensed brokers or steal the identities of real traders; Photos of beautiful people enjoying the good life filled with yachts, sports cars, and mansions

By being aware of the tactics used by more sophisticated scammers, you'll be less likely to fall for their scams.

How to Report Internet Fraud

If you suspect that you have become a victim of an online scam (for example, you want to report a Forex scam), your first step should always be to contact the company in question, as in some cases the company itself may not be aware of the scam. If this approach is not practical or possible, then you should contact the relevant national financial regulator, especially if the company is registered in that country.

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

In other jurisdictions, particularly in emerging markets, light-touch regulation is often the norm. In such cases, you may find that you have little or no recourse, particularly if you are conducting non-domestic transactions in a foreign country.

If your engagement with regulators proves ineffective, you might consider contacting national media to highlight any injustices, or launching an online campaign to draw attention to unethical corporate practices through commentary.

What to do next if you've been scammed

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

Not really. If you have exhausted the above options, there is still another course of action you can take, and it has proven to be very effective. Companies like FinCloudTrace offer dedicated fund recovery services that can help you get your money back. The service is fast, efficient, confidential, and cost-effective. Faced with experienced legal and financial professionals, many scammers quickly succumb to the pressure.

There are many cases of investors who thought their money was gone forever, but have been able to get it back thanks to FinCloudTrace. If you have been a victim of online fraud and are unable to receive compensation, this is a risk-free avenue that is definitely worth exploring.