The internet can be a scary place for those who don’t tread carefully, like the Lake Worth woman who lost $1 million in an online dating scam. Those who aspire to be the next Bernard Madoff have their work cut out for them as the general public shift their focus to online dealings.
Bernard, a self-confessed fraudster, swindled millions of dollars from his clients in one of the most elaborate Ponzi-schemes in financial history. With the accelerated growth of cryptocurrencies and online financial transactions, it’s only natural that the modern-day Madoffs will use the internet as their playground, and boy do they play.
BitConnect Caves With Legislative Pressure
Deemed as one of the biggest tech scams of the century, the BitConnect cryptocurrency lending program lured users with promises of unobtainable performance results. The unscrupulous practices of the firm caught the attention of legal teams and state departments and soon, they have put under pressure the stop their operations.
Cease and desist letters were the start of it, but also meant the end for this $2 billion company. Although users were out of pocket, the class action suit at least provided them with the satisfaction that a major corporation was shut down.
Retirees Become the Focus of Fraudsters
Those golden years are supposed to be filled with fun trips with the grandchildren and lemonade on the porch after a hard days’ work in the garden. Instead, retirees are targeted by online fraudsters who lure them into financial transactions that end up costing them their biggest asset: their house.
This kind of scam has two angles: equity theft and foreclosure rescue. Users are also soft targets for identity theft as all their personal information is handed over to these companies. Not only does this leave the pensioner without their property, but also at risk of losing their financial identity as well.
Beware Tech Support
There are tons of spoof films depicting tech support as these monstrous buildings filled with staff from tech-savvy countries such as India and China. For those who were the victims of Trothsolutions, relying on local tech support is just not an option. With offices in Florida and Alabama, this scheming pair convinced internet users that their systems were in need of serious maintenance and that they provided these solutions.
The husband and wife team, Madhu and Ila Sethi, were banned from running any operation that included the provision of software. There were a number of other restrictions as well, and also a $2 million fine.
Being tech savvy is about more than just knowing your way around browsers. It’s also about knowing that when something seems too good to be true, it probably is.