Ever wonder how those popular multi-million dollar products come to be? Well, the answer is often that they’re fakes. These famous products are likely pumped up by online marketers who make money off unsuspecting customers through multi-level marketing schemes and get-rich-quick promises.
In this article, you will learn about six ways that online scams affect your wallet and how you can protect yourself from becoming a victim. Let’s get started.
6 Ways That Online Scams Affect Your Wallet
One of the major ways that online scams affect your wallet is in the form of “get-rich-quick” schemes that prey on the hopes and dreams of people who want to make quick cash. These products promise to make you rich beyond your wildest dreams, but the truth is, they’re nothing more than get-rich-quick schemes designed to take your money and run. Here are six examples of how online scams affect your wallet:
#1 The Get-Rich-Quick Scam
One of the more popular ways that online scams affect your wallet is through get-rich-quick schemes. These are essentially online courses that promise to make you rich if you invest a certain amount of money in the program. Sounds legitimate, right? Well, the catch is that the products that employ these schemes are usually nothing more than fakes which means that you’re not going to make any money at all. What’s more is that you could end up losing a lot of money if you fall for one of these schemes.
This is because the people who create these get-rich-quick schemes are often scammers who get paid when you sign up for their program. Once you’ve paid them, the swindlers disappear and leave you with nothing. To avoid getting scammed by such a program, don’t give the company your money until they’ve provided you with some kind of product or service. Otherwise, you’ll never know what happened to your money. It could’ve all gone to support a scammers’ luxuries.
#2 The MLM Scam
Another way that online scams affect your wallet is through multi-level marketing (MLM) schemes. MLM scams are all the rage these days, which makes sense since MLM schemes are all the rage these days. Essentially, MLM scams work by getting you to buy a huge amount of something – in this case, most likely a product containing cyanide or some other toxic substance – in order to get a tiny bit of profit. When you buy something as little as a tin of paint, for example, you’re helping to support a scam artist’s luxury lifestyle. When you consider the sheer amount of people who get scammed by these schemes each year, it’s no wonder why so many people are suspicious of online marketers who try to sell them health remedies or diet pills. For those who fall victim to these schemes, the only solace is that it’s usually very hard to get your money back.
#3 The Pyramid Scheme
Another way that online scams affect your wallet is through pyramid schemes. Similar to MLM scams, pyramid schemes get you to invest in a product or service in exchange for a cut of your profits. The difference between MLM and Pyramid schemes is that MLM scams usually only offer “one-on-one” marketing while pyramid schemes offer you the opportunity to participate in a massive network of like-minded individuals. For those who get suckered into these networks, the only way to get your money back is by contacting the company’s support staff and describing the scam to them. Otherwise, you’re basically on your own. So, while it’s great that you’ve connected with other shoppers who share your interest in a product, you need to be careful who you trust with your hard-earned money.
Scammers who run these schemes often pose as financial advisors, tax attorneys, or charitable organizations who want to help you “make extra cash” by investing in a product that will allow you to do so. Again, just because someone offers to help you make money online doesn’t mean that they’re actually providing you with a legitimate service. Legit financial advisors don’t ask for money upfront.
#4 The Ponzi Scheme
Another way that online scams affect your wallet is through Ponzi schemes. As the name implies, a Ponzi scheme is a fraudulent investment scheme where a participant pays off earlier investors with funds from more recent investment. Sounds pretty legit, right? Well, again, the name implies that it’s something that gets you money quickly. The problem with most Ponzi schemes is that they’re designed to collapse as soon as the FBI or some other law enforcement agency gets wind of it. When that happens, all the participants who were paid off in advance lose their money. So, while it’s tempting to want to get rich quick, these schemes are usually nothing more than a way for scammers to steal from unsuspecting members of the public. Luckily, the FBI is usually on the lookout for these types of scams, so as long as you do your research before getting involved, you should be fine.
#5 The Fake Consultant Scam
Another way that online scams affect your wallet is through the fake consultant scam. Similar to the pyramid and Ponzi schemes, the fake consultant scam gets you to invest in a product in exchange for an “upgrade” to a service or consultant. In this case, rather than a financial benefit, you’re getting an implied benefit in the form of advice or guidance on how to make the most out of a product or service. Naturally, this is something that could cost you money if you don’t know what you’re doing, so it’s important to be careful whom you trust. Just because someone offers to give you some guidance doesn’t mean that they’re going to help you make millions from an MLM scam or get you to buy cyanide-laced diet pills. Like with the other scams on this list, research who you’re dealing with and make sure they’re a reputable company before getting involved.
#6 The Fake Charity Scam
Last but not least, let’s discuss the fake charity scam. Like with the other scams on this list, the fake charity scam gets you to invest in a product or service in exchange for a “charity” contribution. The difference between this scam and the others is that rather than making you rich, this type of scam makes you even poorer. When you pay for a product or service with the intention of donating to a charity in another country, you’re often asked to join a “support group” in order to receive your “charity” contribution. Naturally, this is something that should alarm you since joining a “no-name” support group with the intention of giving money to a “charity” in another country is, practically speaking, an invitation to get scammed. Just be careful who you’re giving your hard-earned money to and do your research before getting involved.
By avoiding these six ways that online scams affect your wallet, you’ll be able to stay well away from those who try to swindle you. Just remember: scammers are usually very good at what they do, so be careful who you trust. Ultimately, if you want to make sure that you’re not being scammed, simply ask those who you’re dealing with questions about the legitimacy of the company. If they don’t have an answer, it’s a sign that you’ve been scammed and you should try to find a way to get your money back. However, if they do have answers and they indicate that everything is legitimate, then great! You’ve probably just found a legitimate way to make extra cash.
Hopefully, this article has helped you understand that not all those who want to make money online are out to scam you. Sometimes, those who want to make extra cash have legitimate ways to make extra cash. However, as with any new industry or way of making money, it’s important to understand the potential risks and protect yourself accordingly. Just keep in mind: many people get scammed every day by online marketers who try to sell them fake products, and often times, it’s those closest to you who are trying to help – family, friends, and people you know and trust. So, while it is great that you have someone close to you who cares enough to want to help you make extra cash, be careful who you trust and why. Ultimately, nobody wants to get scammed, and that’s why it’s so important to be careful who you trust and why when dealing with any new make money online opportunity.