Common instagram investment scams to avoid in 2023

Common instagram investment scams to avoid in 2023
10 min read

Several investment opportunities are available online; you just need to type in your investment expectations, and thousands of suggestions will pop up. You can invest in anything from stocks to cryptos.

Several social media apps are available online, and many of us use multiple apps to keep ourselves updated with the latest developments globally.

As easy as it is to find news and other information, it is also easy to fall victim to a scam. These scams are so elaborate that even the tech-savvy may fall for them. Due to technological advancement, many apps created with malicious intentions are available online at a cheap rate. Some of the good ones are expensive, but from a scammer's point of view, they are just one-time investments and can make a lot of money by ripping off victims.

Instagram investment scams are so common that you might know some from your family, friends, or neighbors who have fallen for a scam.

Several scammers use social media platforms to promote their scams; Instagram is also not exceptional, and many have fallen prey to it. Let the article serve as a guideline to differentiate between a genuine financial investment scheme and a bogus one.

Fake investment scams

Scammers are interested in making money the illegal way and will weave a yarn just to entice their victims. They will mesmerize their victims through an elaborate scheme, the way they talk, and the way they project themselves as successful businesspeople.

They are indeed successful; however, their success is limited to ripping off their victims regardless of their financial conditions. These scammers are just interested in making money.

There are some social media influencers who, for a small amount of money, will collaborate with or promote Ponzi schemes, pyramid schemes, and other such bogus financial schemes. These social media influencers check to see if the business they are promoting is genuine or fake.

Some social media influencers will promote investment schemes for which they do not care if their fans lose their money or not. These influencers do not understand the financial market so well. They know that they have a huge reach and a fan base that will follow them blindly.

Such influencers will resort to "pump-and-dump" tactics. Since they have accumulated a lot of wealth, they will buy some stocks that have a lower market capitalization and start promoting them. To make a substantial amount of money, their fans will follow these influencers' lead.

Due to the "supply and demand" theory, the stock prices of those specific stocks begin to surge. After hitting a specific target, these influencers will sell off their lot, making a huge profit, while their fans are on the receiving end, losing a lot of money.

These influencers target even cryptos or any other scheme that has money in it. These influencers are also known to "rug-pull" their fans. Never fall for such stunts pulled by these so-called influencers.

Phishing scam

As we have mentioned before, for a few dollars, scammers can buy some software with malicious intent. They send a lot of messages on Instagram; they will "direct message" or DM their potential victims. Such messages have a link, and when it is clicked, it is directed to a website that will look just like the real one, but it is fake. The victim is prompted to provide sensitive data like their bank account number, social security number, email, and so forth.

The collected data is sent to the scammer, who will then create mischief using the victim's data.

Most victims cannot differentiate between a regular website and a fake one. The reason is that these scammers will make an exact copy of a regular website with all its working features. The only difference is that the URL used by the fake website is different from the real one.

These differences could be like the alphabet "O" being replaced by the figure "0" or the capital alphabet "I" being replaced by the small alphabet "l." Thus, subtle differences are hard to detect, and as a result, many fall victim.

Don't enter any information on any website that a brand has asked you to. You must remember that companies will directly contact you via email or physical mail instead of social media platforms.

Bogus job offer

With the current financial turmoil, many have had to leave their jobs due to job cuts. These are the most vulnerable populations since they are easy targets for scammers. As discussed earlier, scammers prey on their victims regardless of their financial status.

Scammers will DM directly into the Instagram account, offering high-paying jobs with minimal requirements and experience. However, you need to pay a small fee to "buy" certain software that will improve your skill sets. The company will pay the employee back for all incurred costs in the first paycheck.

It is all bogus since companies are known to give any software to their employees without charging them if it is a training program or to improve one’s skill set.

Brand collaboration requests

Many Instagram users wish to become "online influencers" as they gain celebrity status. They get freebies, cash, or both for promoting brands on their podcasts, reels, or simply by promoting them.

These wannabe influencers do not care if the brand is bogus or not; their main aim is to convince their followers to buy such products and get the perks that have been promised to them by the brand.

Scammers are well aware of the fact that these so-called influencers need a bank account to get paid as per the deal. It can be in cryptos or simply good old US dollars. They will convince these influencers to reveal their sensitive data and then make their move. They will then steal all their money, or they might apply for a credit card using the stolen data of the influencer and buy goods and services.

If you are an Instagram influencer or wannabe, try to get as many details from the alleged "brand" company before revealing your details. Refrain from giving out any sensitive data and trust your gut. If your gut says no, then cut off all contact with that brand.

Manipulating followers and reach

Influencers grow big due to their content and the way they represent themselves on Instagram. It is a tedious process that requires them to create content every day. It also takes time before they start making serious money.

Nonetheless, these influencers know that they can increase their reach by having fake followers and likes to boost their ratings. Several firms offer such services; even the scammers are aware of such deals.

Scammers will convince the wannabe influencer to provide details and share sensitive data with them, as we have mentioned earlier. With this data, scammers will wreak havoc, destroying all the financial holdings of the influencer. Be on guard if you are going to seek help from market manipulators who will boost your ratings.

Giveaways

Scammers understand that nobody will pass up a gift, so they send in bogus ads where many flock and try to get their "free prize." As the final date approaches, they will DM all those who have applied for the "free prize" and also send in a request form under the pretext of authenticating that the winner is who they claim to be. These scammers will also ask for some money for shipping and handling charges. Once these scammers receive the data and the money, they simply disappear again after a few months.

We will now show you how to protect your Instagram account.

Getting started

Your Instagram account is set to "Public" by default; you can change this by opening up your Instagram account and tapping on the hamburger menu (the three horizontal lines) located in the upper right corner.

Select "Settings" and move the slider to activate "private." Congratulations! Your account is private. Your family and friends can still reach you by typing your username if they are not added. The old list remains unchanged.

Use a stronger password.

A simple password can easily be hacked. Use a combination of numbers, signs, and alphabets to create a strong password. Such passwords are also called alphanumeric passwords.

Using a two-factor authentication password

Instagram offers a two-factor authentication password. Such a feature offers added security to the users; thus, hacking the account becomes harder for scammers and hackers.

Unsolicited DMs:

Refrain from entertaining any unsolicited DMs, and be extra careful to open links provided in them. It could be a message from scammers who are trying to scam you.

Third-party apps

As time progresses, you may feel the need to use third-party apps. Some of the apps send your details to scammers, who will then try to target your account. You must monitor and ensure that these apps are not sending your details to someone else.

Open up the Instagram account, and then tap on the three horizontal lines (the hamburger menu) located in the upper right corner. Then go to Settings → Security → Apps, and Websites.

You can view how many apps are active, expired, or removed. Delete all expired apps, or those apps are of no use to you.

Conclusion

If you get an offer that is quite extraordinary, assuring all the high-end perks at a competitive cost, then it is better to let go of it. You can be certain that whoever submitted it intended to steal your information and cause you trouble.

Refrain from sharing your details online, as they can be used against you.

In case you have found a mistake in the text, please send a message to the author by selecting the mistake and pressing Ctrl-Enter.
Erica Sam 2
Joined: 1 year ago
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