Home Scam/Fraud 8 scams that target amateur investors — Scam Guards

8 scams that target amateur investors — Scam Guards


Amateur investing is certainly having its moment.

What began as an upswing in casual day trading during coronavirus lockdowns, spurred on by the love ‘em/hate ‘em free trading apps like Robinhood, has now turned into a full-blown trading revolution thanks to the arrival of Reddit-driven frenzy investing.

At the same time, the rise of so-called “swarm” investing has led to regular people getting burned. Buying equities based on social media tip-offs is, generally speaking, not such a great idea — especially buying a stock while it is hitting record highs or investing your savings into a dog meme cryptocurrency.

Dogecoin and Bitcoin are displayed on January 29, 2021 in Katwijk, Netherlands. (Photo by Yuriko Nakao/Getty Images)

And while price volatility and inexperience are definitely big risks for amateur traders, there is another danger that has been largely overlooked but is equally dire: Criminal…

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