Fraudsters can dupe anyone, and each fraud is unique. Scams are typically difficult to detect since they appear authentic at the time. Scammers can spoof reputable businesses by using professional-looking websites and applications.
They might reach out to you by phone, social media, email, or text messaging. They might pose as someone you recognize, such as your fund manager, financial adviser, bank, or friend. They will promise assured or unrealistically high returns on investment.
Investing online, particularly in the Foreign Exchange Market, may be dangerous. Forex scams abound in online trading, fueled by scammers who benefit from the anonymity of dealing online. Recognizing a risky broker in advance can save investors from catastrophic consequences.
In general, a Forex phone hoax will try to get your attention immediately – within seconds, the caller will either 1. provide a chance to invest little and make a lot of money or 2. identify themselves as a professional trading counselor representing a Forex broker. Although some of these calls may be legitimate, most are Forex scams.
Let’s Hear A Story In A Victim’s Own Words.
I was contacted over the phone by an internet trader specializing in binary options, bitcoin, and FX trading. He claimed that his business was cutting-edge, used the most recent technology, and could provide guarantees.
After the phone call, the person checked their website and found reliable information to make an investment. However, the victim mentioned that the platform used a common web trading platform, not the updated MT5 or MT4 platform. Unfortunately, we all know that some forex scam websites use these two platforms too. So, how to identify the scam? We will mention this later.
I made a small investment and used their web platform, which appeared to function effectively. I could tell that the trades I made were profitable. However, they insisted that I increase my investment and guarantee more returns. The scammers said I would have to pay taxes on my gains before accessing my money when I wanted to withdraw it. They claimed that I had to pay taxes before receiving my money back, despite having never been notified about this.
They were incredibly skilled and convincing in their deception, which makes me feel ashamed. But then, when I realized it was all a lie, they claimed I would be “kicked off the market” since my trades were losing money and I had lost three percent of my initial investment.
Some signs indicate that it was a scam from the onset:
- Phoned out of the blue by a stranger offering Unasked-for investment advice;
- informed that he had to pay additional fees (in this case, taxes) to access his money;
- earlier promised ‘guaranteed returns’;
- encouraged to invest more by being promised higher returns, and then pressured to do so or risk losing all of his money
Forex con artists profit from complex terminology, extensive “terms of usage” agreements, and lengthy “risk disclosures.” These contracts are significant because they are legally enforceable and because each condition may have drawbacks for the investor, who could need to find alternative means of recovering trading losses.
After getting scammed by this platform, I was looking for recovery options where I could submit my report and can get help to recover stolen funds. After researching, I found Report Scammed Bitcoin‘s website, which mentioned that they could help and advice people , after getting scammed.
I submitted my incident and surprisingly noticed that they have a list of forex scammer list, and my company’s name is among them. So I thought, why did I not check before investing? They contacted me and provided me with a free consultation which was unbelievable. Because other companies claim fees for an initial consultation, but they did not.
Now, here are some little tips on how to avoid these scams:
- Don’t try to be nice: Hang up the phone, and immediately you see the red flags. If you stay on the line, they may try to be more convincing and lure you further.
- Cross-check the business to ensure they have met the legal registration requirement with the SEC(This varies by country).
- Do not believe any investment offer made over social media. You have no idea who you’re working with on the other end of the phone.
Before investing, always get independent financial counsel.
There are some other ways how these scammers can con you. For example, they show you photographs of well-known business or entertainment figures who have seldom allowed the use of their picture. They use these photos because they subconsciously create interest, causing users to click and learn more.
Another strategy utilized in these marketing schemes is the “from rags to riches” narrative, which uses images to tell the story of someone who formerly struggled to make ends meet but is now living the highlife owing to Forex investments.
Trading in Forex and CFDs often takes time to become lucrative, so be skeptical of any forex broker who offers the chance to “get wealthy quick” or to make significant and fast returns on little deposits.
Real & Helpful Stories
File A Complaint Against Scam Broker's
Reputable Forex brokers should never discourage their clients from self-educating themselves on trading or the Foreign Exchange market. Unfortunately, another approach used by sham brokers is to dissuade their clients from learning about trading and instead encourage them to trust the broker’s “expertise and leave the decision-making up to them.” By doing so, they can make judgments on behalf of their customers that are not in their best interests.
Each circumstance is unique, so their staff investigates each case and consults with clients before, during, and after instructions to establish the best path for recovering cash invested. You should act swiftly if you believe fraudsters have targeted you. Just report a scam to us and get a free consultation on finding ways to recover the funds.
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