Useful Tips

How to avoid fraud


The brutal 90s taught a lot of deceived citizens and scammers of all stripes. “MMM”, “Russian House of Selenga”, “Khoper-Invest” - these names are well remembered by every post-Soviet new-Russian. Today, professional scammers are outwardly indistinguishable from law-abiding businessmen, and fraud schemes fit comfortably into model contracts, though more often than not - in the form of footnotes and comments in small letters ...

So, how to calculate scammers and not fall into their tenacious paws?

To begin with - we listen to advertising. If prospectuses, billboards, videos and other marketing forces urge you to "join before it's too late" or threateningly say that this offer is valid "only one day", "only until Monday" and the like - beware, especially if if the name of the company is not well known to you, or even completely unfamiliar! If you are offered to bring your two friends-relatives-acquaintances into this "most profitable" financial institution and promise a part of the money they invested as a bonus - this is a 100% scam!

Gather your flattened ears, remove noodles from them, grab your feet in your hands and run away as quickly as possible, because the training system for managers in such scam companies is at a very high level, and convincing you is their highly paid job. If you do not have time to escape, after a couple of days you will be surprised at yourself: “And how did I fall for such nonsense?” But you just have to sprinkle the ashes of your own burned savings ...

If fraud is not as obvious as in the cases described above, we begin to read the inscriptions. And not just read, but read ATTENTIVELY. Every worthy financial and credit institution must have a stand where existing licenses and other information are proudly posted.

What to look for? Today, all reputable banks participate in the state deposit insurance program. An agreement on participation in this system is usually placed on an information stand. If the institution does not participate in the insurance system, then in cases of force majeure, crisis, default and other unpleasant situations, your money is unlikely to return to you. Honestly earned money can be transferred to such a bank (or other financial office) only if its owner is your close relative and you do not feel sorry for him.

Next - read the contract. Remember: you brought your savings to ONE company, and if you are offered to sign a multilateral agreement between you and five other companies, you are fraudsters.

Another common way to extort sweat and blood from earned money is not a contribution agreement, but a donation. The Russian people really do not like to share what they have earned with the state, and fraudsters perfectly play on this thin string of our mentality. The manager will clearly explain to you that by concluding a donation agreement, you will be exempt from paying taxes on income received, provide statistics and compare the figures of possible profits. But he is unlikely to mention that you will not see this money ...

There are many other alarming factors, but even the several fraud options listed here can really help you in choosing a financial and credit company to place accumulated funds.

When looking for other people

Criminals quickly found that it was much easier and faster to make money together, but not separately. All these financial pyramids, pseudo-online stores and everyday business have flooded the countryside of our homeland. They teamed up with a large number of entrepreneurs and enterprises, but their goal is far from noble - to use the funds of the state budget, private banks or individuals.

Such interventions in the financing of government and individuals should also be stopped at the stage of creating a fraudulent company. To this end, we will look at the most popular fraud schemes when registering a limited liability company. Please note that you can learn more about LLC registration at

Entrepreneur and three "funny" letters

LLC is nothing more than a legal form that allows an entrepreneur to carry out commercial activities.

At the same time, the entrepreneur himself must be the founder. I agree that this provides strength to business people. But not all business people who register an LLC strive to create honest money.

For example, pseudo-entrepreneurs register their business, organize large-scale advertising campaigns, ensure strict adherence to all promises, receive loans and borrowings, and the next step will be the announcement of bankruptcy of the company.

At the time this happens, the amount of loans that were previously fulfilled exceeds the imagination of an ordinary person on the street.

Types of Fraud

At first glance, identifying fraud is not only difficult, but simply impossible, but most of them use the following tricks when registering a limited liability company.

    Register your company for incorrect documents.

The owners may be people whose documents have been stolen or lost. Fraudsters buy fake documents and stamps, think about fraud schemes and turn to law firms - brokers working with state registration agencies.

After all the procedures, scammers begin to receive significant amounts of money, and after all of them have been removed from the fake LLC, they disappear forever to become the founders of a new such organization after a certain time.

  • Use the names of existing enterprises and enterprises.
  • When registering scammers, a fictitious legal address is provided. Here you can also be a fake certificate of ownership or rental.
  • The mandatory procedure for opening a bank account can be carried out in the same way with fake documents and with the help of a stupid member of a criminal group.
  • Criminals distribute fictitious accounts and shares.
  • Pseudo-founders start working without proper licenses.
  • Criminals in most cases register several companies at the same time, receive loans and borrowings, and because of this, bankruptcy contributes to the incomparable growth of others.
  • The country is fighting fraud

    State institutions that register entrepreneurial activity also do not like, improve laws.

    Thus, fraudsters who were previously found guilty of a violation may be denied LLC registration. It should only be mentioned that the new tricks with fraud will give the government a valuable deviation and provide its citizens against unscrupulous and entrepreneurial criminal elements.

    How to Avoid E-Money Online Fraud

    Webmoney, Yandex.Money, Qiwi, PayPal and many other systems allow you to quickly and efficiently use your time, making various purchases or paying bills in literally minutes.

    But all these electronic wallets require special attention to themselves and certain safety precautions in handling:

    1. Strong password. Such systems not in vain require the most complicated password possible - it is much more difficult to pick up and crack. Use a minimum of 15 characters, letters, numbers. But not a password for a birthday, wedding, or something like that. It is better that it be very complex and incomprehensible even to you. But do not forget to write it in a place inaccessible to others.
    2. Reliable e-mail. If you forget your username or password, you can resume access via e-mail, so access to it should only be yours, and the password to it is very complicated. This mail should not be used to register with other services and systems in order to reduce the risks of hacking.
    3. SMS confirmation. If possible, activate the SMS confirmation service of any operations with your electronic money. Sometimes this feature is automatically connected when you attach your mobile phone to your account.
    4. Https. When buying a product or service on any services where you need to enter your wallet data, make sure that in its address bar the data transfer protocol is not standard HTTP, but improved - HTTPS. The latter is considered many times more reliable, your data is encrypted and no one sees real information, even the seller.
    5. Do not make transfers to other people's unknown wallets. Very rarely, reliable companies do not have their own site with the ability to pay through payment systems. If on the service you need to transfer money directly to some wallet number, there is a high probability of fraud.
    6. Do not share your username and password with anyone and never. If a payment system employee asks for personal information for unknown reasons, then he is not an employee (except when you are trying to restore access to your account).

    Several rules of conduct with bank cards on the Internet

    Very often network users prefer not to start electronic wallets, they say there are bank cards and now they can pay online for anything.

    All this is true, but, in our opinion, there is no need to artificially limit yourself, there are different situations.

    Now, directly on how to behave with a bank card in order to avoid fraud on the Internet:

    1. The most important thing - Do not share your details with anyone. Especially the last digits of the card number and CVV code. You have no right to ask about this even at your bank, not like in some services. The only place where you can enter data to confirm the purchase is the payment page with the HTTPS data transfer protocol. If this is not the case, do not enter your billing information in any case.
    2. Use customer bank. The safest payment option is when you are billed, which you pay off on your bank’s website through a special client program.
    3. Do not do anything with a bank card (online purchase, entrance to the client bank) in public places, internet cafe and similar establishments.
    4. SMS confirmation - This is a guarantee that your money will not go in an unknown direction, even if someone found out your bank details. (If the phone was lost, and SMS confirmation was attached to it - urgently contact the bank to block it).

    Actually, all of the above rules (and those about electronic money and even earlier) will help you avoid online fraud.

    Of course, there would be much more to write, but the realities are such that no one is safe. At the same time, if you behave correctly and be always attentive - no one can deceive you.