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The stock exchange is an exciting if complex world. But be warned–newcomers are easy targets for financial fraudsters and scammers.
First-time investors are unable to discern between regulated and unregulated companies. They are unaccustomed to international legal finance and know little to nothing about risk assessment. Moreover, inexperienced investors are ignorant of diverse sector-specific formalities amid the business world. Business to business interactions share different cultures, and it takes knowledge and experience to gain confidence in dealing with predatory and hawkish brokers.
In the post-dotcom era, breaches in cybersecurity shoot down financial dreams in their tracks. In other words, the internet is a cesspool for financial scamming and fraud. Online connectivity allows fraudulent companies to disguise themselves, convincing ignorant victims of their legitimacy. The mask of virtuality is an easy trap for luring incompetent investors. Once these malicious companies obtain their clients’ personal information, victims are roped into years of legal litigation and fees connected to identity theft.