As long as the internet has existed, there have been online scams. Of course, scams and fraud have existed since ancient times, but the Internet is particularly suitable for these illegal activities. Online, it’s easy to scam people out of their money, easy to pretend to be someone else, easy to disappear, and easy to cover your tracks.

Sadly, many defrauded investors do not know how to report online fraud. Additionally, they may not be willing to come forward and draw attention to the fact that they were defrauded. The worst part – and the saddest part – is that fraudsters often take advantage of people’s reluctance to publicly admit they’ve been scammed.

It is better to be prepared. By understanding the most common types of scams and the tactics scammers often use, you can avoid many of the dangers inherent in online transactions. This guide will tell you what to look out for. If you’ve 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 funds back.

Different types of trading scams

Trading scams come in many forms, but they all have one thing in common: they illegally steal your funds. When you are planning to conduct online transactions, please be aware of the following scams:

Unethical brokers perform unfair or illegal trades, charge exorbitant fees, and make it extremely difficult or impossible to withdraw your funds. Fake companies may be here today and gone tomorrow. Such trading companies are often based overseas and hold fake or stolen registration information Questionable investment schemes, often involving old favorites such as precious metals, gemstones, oil and mining, or the latest "hot" markets such as cryptocurrencies, high-tech, green energy and the US legalized marijuana industry Expensive automated trading packages or robots (especially forex trading) that fail to deliver the promised returns Fake financial experts who offer you professional advice in return for expensive subscription fees, but the advice is not

It is important to note here that just because a company is well-known and well-known, it does not guarantee its integrity. Examples abound of major companies being caught committing malpractice, either because of employee misconduct or, more worryingly, because of illegal policies approved at the highest levels.

No matter where you invest, it goes without saying that you should always do your research and due diligence.

How to spot a scammer

Some scams are so obvious, it's no wonder people fall for them. Like shoddy websites, bad grammar, poorly written emails, or billionaire royals who seem to be in trouble!

As with every investment opportunity, it is critical to do your homework. Even the most cursory research is enough to sound the alarm bells when necessary. Be sure to read online reviews, search the company name on Google, check out 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 courting disaster.

But 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 seemingly authentic, which makes them even harder to detect. But even then, there are usually clear warning signs, such as:

Fake celebrity endorsements: Ask yourself why a famous multi-millionaire would want to participate in a trading scheme Unbelievably high promises of returns: Every investor knows the dangers of pyramid and Ponzi schemes, but people still fall for them Limited time offers: Be wary of schemes that encourage you to act now or miss out, as they may cloud your judgment Fake websites cleverly copy the look and feel of licensed brokers or steal the identities of real traders Beautiful people enjoying a fabulous lifestyle filled with yachts, sports cars and mansions

By understanding the tactics used by the more sophisticated scammers, you can be less likely to fall for their tricks.

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 course of action should 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 realistic or possible then you should contact the relevant national financial regulator, particularly if the company is registered there.

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 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 emerging markets, light-touch regulation is often the norm. In this case, you may find that there is little recourse, especially if you are conducting a non-domestic transaction 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 contacted the scam company, regulators, and the media, and left harsh, critical reviews online. But nothing has changed. You still don’t get your money back, and the scammers are on the loose. It's all over, right?

Actually not. If you have exhausted the above options, you have another course of action, and this one has been proven to be very effective. PayBack Companies such as provide specialized fund recovery services that can help you get back the funds that belong to you. The service is fast, efficient, confidential and affordable. Faced with experienced legal and financial professionals, many scammers quickly succumb to the pressure.