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Navigating online money-making: Scams to avoid

By Nicole Comendador

November 28 2023
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Navigating online money-making: Scams to avoid

By Nicole Comendador
November 28 2023

In an era where the click of a button can lead to monetary gain, the internet has become a bustling marketplace for those looking to supplement their income. However, where there is opportunity, there are also opportunists ready to take advantage of the unwary.

Navigating online money-making: Scams to avoid

By Nicole Comendador

November 28 2023
Share

Australians looking to navigate the world of online money-making must be vigilant to steer clear of scams. Here’s how to identify potential scams and protect yourself from becoming a victim.

Navigating online money-making: Scams to avoid

1. Investment schemes

Phoney investment schemes are rampant online. They promise high returns with little to no risk, often involving cryptocurrencies or ’revolutionary’ trading software. They may pressure you to act quickly or promise guaranteed returns. Remember, if an investment opportunity sounds too good to be true, it probably is.

2. Phishing scams

Phishing scams lure you into providing personal and banking information under the guise of reputable organisations. Always verify the source before clicking on links in emails or messages. A legitimate business will never ask for your password or bank details via email.

3. Pyramid schemes

These schemes are cleverly disguised as multi-level marketing (MLM) opportunities. They rely on recruiting more people to invest in the program rather than selling an actual product or service. If the focus is more on recruitment than sales, steer clear.

4. ‘Get rich quick’ schemes

Online courses or programs that claim to teach you how to become wealthy in a very short time are usually suspect. These often involve a substantial upfront fee and provide little to no value in return.

5. Mystery shopping

While there are legitimate mystery shopping jobs, scammers often use this ploy to trick people. They might send a cheque, ask you to cash it, and then use some of that money to ’test’ a money transfer service. The cheque will eventually bounce, leaving you out of pocket.

6. Online surveys and task completion

There are genuine websites that pay for completing surveys or tasks, but some are scams that either don’t pay out or require you to pay for membership. Research and read reviews before committing your time and personal details.

How to avoid online money-making scams

Do your homework

Research is your best defence. Before investing time or money, do a thorough check of the company or offer. Search for reviews and complaints online, and check with official regulators like ASIC to confirm legitimacy.

Secure your personal information

Be cautious about sharing personal information. Use strong, unique passwords for different sites, and enable two-factor authentication where possible. Keep your computer’s antivirus software up to date.

Understand the offer

Make sure you fully comprehend the terms and conditions of any online money-making venture. Be wary of complex jargon or convoluted explanations designed to confuse and mislead.

Trust your instincts

If something feels off, trust your gut. Scammers often use high-pressure tactics to push you into making decisions without giving you time to think or ask questions.

Report suspicious activity

If you come across a potential scam, report it to the ACCC through the Scamwatch website. Your report could help others avoid being scammed.

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The allure of easy money can be tempting, but the internet is a minefield of scams that prey on hopeful money-makers. By remaining informed and cautious, you can navigate through dubious offers and find legitimate ways to earn money online.

Always remember, when it comes to online money-making, if it seems too easy, too fast, or too good, it warrants a closer look. Stay vigilant and keep your wits about you to ensure your online endeavours lead to legitimate gains, not losses.