Scams - Internet Scams
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The Internet is a sea of opportunity for many enterprising individuals. It is also a fertile ground for many Internet scams. Many of the scams have their origin in the real world. One should be careful while pursuing any Internet based business. One should ensure that the sites have a comprehensive list of people who can be contacted for any feedback or information about the business. It is a good idea to look up sites, which warn against fraud sites, to rule out that the particular company is not one of them. It is advisable to examine their return policy. Most companies offer a thirty-day trial period at the end of which the membership fee can be refunded. It also pays to check out if there are innumerable complaints against a company or its products and services. If there are too many complaints, one must obviously stay away from such a company.
Internet marketing is different from regular marketing. However, there is nothing too difficult about it. A wise person can avoid getting into Internet scams by being simply careful. One must watch out for unrealistic schemes, which teach methods to earn a fantastic amount of money in a short time. There are particular frauds that one must be wary of. Internet bulletin boards and chat rooms as well as enticing e-mails are some of the ways of enrolling people in Internet scams, simply because it is difficult to distinguish between real and fraud messages. Bulletin Boards perpetuate a platform for exchange of inside information, which may or may not be true. It is easy to create hype around a company be simply posting good reviews under different names. While some messages are genuine, others may be a front for phony companies.
Online Investment Newsletters are another scam device. They may offer free information to investors and simultaneously recommend a particular company for investment. These newsletters are mostly credible sources but may occasionally be paid by companies to recomend on their behalf to investors. They just appear to offer unbiased views based on solid research, while in reality their credibility may be circumspect. Their actual aim is to just hype up the price of worthless stocks and then profit from the sale of these stocks when the price is just right. E-mail Spam is an affordable way to reach millions of investors with specific messages, especially for bogus companies and their fraudulent schemes.
One can profit from the Internet only if one keeps a few points in mind. Every investment must be made on thorough analysis and not just any expert’s recommendation. The financial statements of the company must be dissected, the background of the promoters must be checked and claims about new products or new business must be verified. One must try to talk to existing suppliers and customers to find out about the existence of the company.
One should watch out for other frauds. Many schemes are only pyramids whose sole purpose is to earn money just by enrolling more people. Other companies to be avoided are those that offer risk free exotic investments with high returns, and those based outside the country. A smart investor is one who is aware of the workings of these Internet scams and therefore avoids investment in such companies.
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