Nowadays technology is growing very fast, as a result, the internet has become very cheap, which opened a wide variety of investing options. Most of the people are finding the internet as the cheapest and most convenient platform for investing. There are a lot of online trading options which are available in the market. Most of the online trading options are more profitable than traditional investment methods, so more people attracted to it. The impact of digital currency brings a noticeable change in the world economy. However, the rules and regulations related to the online trading system are not properly framed as a result the internet has become a place where different kinds of fraud flourish.

A lot of scams have emerged in the online trading market as some people are very greedy and they resort to any means to make money even by cheating anyone. The current reviews show that the onset of the internet brings another dimension to cheating methods, for instance, imitation of the website of a reputable company can mislead a lot of people into believing a scam operation.

What are the Largest and Successful Investment Scams in the Online Trading Market?

  • Pump and Dump

In pump and dump practice where a small group of informed people buys a stock before they recommended it to thousands of investors. It makes a quick hike in the stock market and followed by an equally fast downfall. The informants who bought the stocks early, sell it at the peak point of stock price and thus make a huge profit.


  • Prime Bank

These are the top 50 banks in the world and fraudsters use this term to make innocent investors believe that they are investing in these banks financial instruments. Such investing options really don’t exist and investors end up losing all their money.


  • Ponzi Scheme

This is a system where money from new investors is used to provide a return on investment to older or previous investors. It will eventually face a fall down when money owed to previous investors will be more than that can be raised from new investors.


  • Offshore investing

One should be very cautious when investing in foreign countries as it is very difficult for local law enforcement agencies to investigate such cases. To add fuel to its internet has made international calls cheaper which helps fraudsters to make schemes to fool innocent investors in different countries as well.


The best way to react to these types of investment scam to report on the security scam exchange commission, by this way you can confine the effects of the scams to a limit.