Investing Online: Is it Riskier?

February 15, 2013 By Leave a Comment

Investing is one of the most well-known financial related activities. Absolutely anyone can get involved in financial investing, and the advent of the Internet has actually made it much easier for people to do so. The ease of use is an obvious advantage of online investing and research, and there are many other advantages as well. It’s important to note, however, that there are also some definite risks involved in this activity. You should take all the possibilities into account to fully understand the actual risk you face from online investing.

Advantages of Online Investing

There are numerous advantages to online investing, but the following are some of the most beneficial.

1. Real-time Stock Updates and News

One of the greatest things about investing online is the fact that a person can use programs, stock information websites, and even smartphone apps to get live information pertaining to their stocks. When a person chooses to invest in the stock market, this information can be the difference between making and losing thousands of dollars.

2. Speed of Investment

Another great benefit of online investment is the speed at which a person can operate. Individuals can make any type of business deal online with only the click of a button. This allows for quick action, and in the investment world, the ability to react quickly is absolutely fundamental.

There are also some distinct disadvantages related to online investing, and the following can actually prove detrimental.

1. Lack of Support

One of the largest disadvantages related to online investing is the lack of support a person has when participating in the activity. There are always going to be websites that offer “professional advice,” but this really doesn’t constitute a beneficial relationship between an individual and an investment professional. This lack of human interaction ensures that a person has no one to share ideas with or get opinions from.

2. Stock Fraud Hazards

Another huge flaw with online investing is the chance of encountering stock frauds. There are numerous frauds out there, and some are surprisingly simplistic to carry out. In September of 2000, for instance, a 15-year-old boy was fined for carrying out an illegal “pump-and-dump” scam.

A pump-and-dump con occurs when a person posts false information and undertakes other fraudulent activities in an effort to get people to purchase a certain, usually worthless, stock. That person then sells all of his or her shares once this valueless stock has unnaturally inflated. Once the “pumping” ceases from the criminal, the stock will usually return to its former low price.

There are other fraudulent stock activities that can be perpetrated against unsuspecting victims via the Internet. Online stock trading makes unsuspecting customers more likely to fall for “chop stock” investments where companies sell certain stocks for much higher than they’re valued in an effort to turn a substantial profit for the person selling them at the expense of naive customers. In worst case scenarios, a stock fraud attorney may even need to get involved.

Online investing has made it much easier for the common person to get involved in financial investing. This is a great thing for the economy in general, but it’s imperative for a person to recognize the risks involved in this type of activity. It’s not that the Internet isn’t a safe place for investing; it’s just the fact that if a person doesn’t take proper safety measures, they could be scammed. As long as you follow appropriate investing practices, you should be relatively safe online.

Savannah Bobo is an English graduate and freelance writer/blogger interested in opening up discussions that help to combat Internet scams. Many of us think we are not vulnerable to misinformation online, but stock fraud is diverse and scammers are creative. A stock fraud attorney, such as those at the Page Perry firm in Atlanta, can explain the differences between analyst fraud, churning, and other types of stock fraud.
Filed Under: Investments Tagged With: , ,

5 Things Businesses Should Know About The False Claims Act

February 6, 2013 By Leave a Comment

 

5 Things Businesses Should Know About The False Claims Act

As a business owner, it is crucial for you to know how laws affect your daily operations. From a financial and moral perspective, knowing these laws will often determine if your business will be a success or come under federal scrutiny. Unfortunately, each year, many business owners find themselves squarely within the cross-hairs of the False Claims Act, a law designed to catch business owners who defraud the government. With that in mind, consider the following:

1. Governments Contracts
As with any contract, you, as a business owner, are required to abide by the terms of any contract you agree to with the government. Because the False Claims Act strictly speaks to contractors who become involved with the government, it’s important for you to understand it. Essentially, you need to educate yourself and your employees regarding the Act itself and what practices it defines, bars and permits.

2. Blowing the Whistle
If your company is found to be in violation of the False Claims Act, it may be sued for its actions. Essentially, the law allows citizens to act on behalf of the government to sue companies that are engaging in fraud against the government. As a reward for doing the right thing, such citizens are offered a portion of the successful judgment, and these portions can be up to 30 percent. It’s important to know that someone like a Goldberg whistleblower attorney will be extremely effective in fighting to convict your business should you move against the False Claims Act. And also, keep in mind that money is a motivating factor in the decisions of many people, meaning you never know when an supposed trusted and loyal employee will turn your company in for illicit dealings with the government.

3. Disclosure
Prior to 2010, cases involving the False Claims Act were struck down if they involved public disclosure arguments, but today, such cases are allowed to proceed. What this means for your business is that you must disclose everything that you offer publicly to the government when the information becomes available. For instance, if you offer a special discount to a certain set of consumers, yet you don’t offer this same discount to the government, you must disclose this information or else your company may be in violation of the law.

4. Overpayments
In addition, your business must also report any overpayments by the government or you may be at risk of violating the False Claims Act. Overpayments might seem like a nice bit of extra money, but if someone reports you for them, you’ll likely be sued. When you are, you’ll not only need to reimburse the government for the overpayments, but you’ll also be penalized for violating the law.

5. Kickbacks
You need to realize that referring customers, vendors, or partners to governmental services that will benefit your business is a violation of the Act. If your company is intentionally directing customers to government programs for the purpose of making more money for your business, this is considered a kickback, and it’s illegal.

One of the best ways to defend yourself and your business from the potential for falling victim to the False Claims Act is to ensure that you and your employees are educated. In addition, you may consider partnering with a False Claims Act attorney to discuss your current business practices and government contracts. Even if you feel that all of your practices are legal, they might not be, and an attorney will be able to give you expert advice and direction to ensure your company’s success for many years to come.

Featured images:

Saam Banai is a freelance writer and editor and advocate for legal and moral business practices. If you wish to educate yourself on the False Claims Act, or if you know of the illegal actions of a business, contact a Goldberg whistleblower attorney from the firm Goldberg Kohn Ltd. The attorneys at their firm are committed to aiding in the fight against defrauding the government, recovering as large a share of any recovery as possible, and protecting your rights.

Filed Under: Financial Crimes Tagged With: , , , , ,

Child Safety On The Internet

November 19, 2012 By 1 Comment

All parents worry about their children. We worry about if we can trust them and who they are spending their time with. Ten years ago this was only a problem for teenagers and young adults, now, with the ever changing face of communication this can be a worry for parents of children as young as 4 or 5.

Research shows that by 2 years old more than 90% of American children have an online history and, at 5, more than 50% regularly interact with a computer or tablet device. It is more important than ever to consider the relationship between the internet and our children. The internet can influence and change childhood, emotional growth, social development, educational prospects and we need to understand the risks.

The uptake of social networking in young children has increased rapidly over recent years and, with the development of sites such as Club Penguin and Webkinz, social networking is now being directly targeted at younger children. The worry is often of the dangers that can come with internet use and there is a tendency to want to stop children using the internet all together.

With adequate privacy settings, and an understanding of what your children are using the internet for, we can regulate the use of the internet. By taking an interest in what they are doing, just as you would for sport or homework, they will take it more seriously and try to meet your internet expectations. Teach them from an early age about privacy and their identity; that they need to protect their identity and not give out personal information, and also make sure they understand passwords and who to interact with online.

Research shows that there are risks but that we need to understand their severity. As parents we worry about the internet because of the unknowns and because, often, neither children or parents fully understand all of the risks out there in the online world. The basic fact is that the risks that are in the offline world exist in an intensified and often more accessible form online.  Research shows that it is everyday factors making children more vulnerable and that those children with offline vulnerabilities – such as no support from parents, poor relations with friends, or those who are simply lonely  – are extending this to an online vulnerability. It is the job then of healthcare professionals, social workers, teachers and parents to see this problem offline and extend their concerns to children’s online behaviour.

Considering that children as young as 5 or 6 are as familiar with the internet and computers as they are with toy cars or dolls it is now necessary to regulate the use of the internet in a reasonable way for your children. Some advice is to keep the computer in a family room and not allow computers in a bedroom. If the computer is kept in a family room then time spent on the computer will be seen as a family activity and you can keep an eye on it.

Social media etiquette and appropriate behaviour is now a part of something we need to teach our children. Teaching your children the correct etiquette for social networking, the appropriate behaviour when posting information about themselves, and what they are uploading is important. Research is showing that young people are regretting what they have posted about themselves by high school and a rise in cyberbulling relates to the information that is being posted about them.

Media and technology impact on children’s social, emotional, and cognitive development is only beginning to be studied. There is some indication that our over exposure to the internet might be linked to a limited attention span in children, a lower comprehension, poor focus, and lack of basic literacy skills. This is affecting children’s work habits, thought processes and how they feel so, as parents, we need to be taking better steps to improve our families internet safety.

Jane writes about internet safety for kids based on raising awareness to resources such as the Vodafone Parents’ Guide.

Filed Under: Guest Posts, Security Tagged With: , , , , , , , ,
« Older Posts
Newer Posts »