How To Spot A Scam And Stop It Dead In Its Tracks by John KarnishAccording to US Securities and Exchange Commission internet is an extremely easy place to promote a scam. The internet allows people to reach a large populace with a very small amount of money. "Anyone can reach tens of thousands of people by building an Internet web site, posting a message on an online bulletin board, entering a discussion in a live "chat" room, or sending mass e-mails."
It's extremely hard to spot fraudulent opportunities from real ones and you can end up losing a large sum of money.
Message boards are an extremely easy way to post a scam. All you need is an alias. The scamster simply creates a post under a false name. He then starts creating a thread. For instance, "Has any one heard of xyz company, I heard they offer a great opportunity." A bit later, he'll follow up with something like this. "Yes, I heard of them. I've only been an associate for a month and have already made $2,000 dollars."
He'll keep on creating threads with different aliases to create false credibility.
Email is also an easy way to promote a scam. A scammer can reach hundreds of thousands with little money or effort. One popular email scam lately is "Nigerian Scam." Emails are sent to business owners, claiming that sender is a high official in Nigerian Government. They claim that they need move a large sum of money out of their bank, and with your cooperation, they want to deposit it in your business account. They require either an up front fee or your banking information. As you probably can guess your bank account will get depleted.