Common scams in forex / cryptocurrency trading, beware!
2022-10-14 18:12:00
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As more and more people enter the investment market, the number of investment scams is increasing day by day.

Many people cannot resist the lure of foreign exchange investments, but have little knowledge of the forex market, which gives scammers the opportunity to take advantage of it.

The following are some of the more common forex/crypto/investment scams in recent years. FxGecko recommends that you take a few minutes to understand their schemes to avoid being scammed.

10 Most Common Forex Scams

1.Fake trading

Some forex brokers are not satisfied with making money by charging commissions, they will manipulate your trades through their own back office and create fake trading data, when in fact you are not really in the forex market. They usually end up eating your money by letting your account blow up.

2. Investment group scam

There are scammers through the form of network groups, claiming that as long as you follow their forex experts to trade, you can make a lot of money, thus attracting a large number of forex beginners into the group to follow the single.

The group inside a large number of trading screenshots and proof of profit will let you slowly fall, tempting you to follow them to open an account, deposit.

But the money to them, whether to enter the real foreign exchange market will be a mystery. Because many scammers have their own trading platforms, they can create fake data.

And in order to gain trust, the scammers can really let you see the account profits skyrocket at the beginning. But when you invest more money, you will find that they use various reasons to prevent you from withdrawing your money. When you find out that this is a scam and want to expose them, you will be kicked out of the group.

3.Pig Butchering Scam

This can be described as a romantic scam in investment transactions.

Scammers usually contact you through dating sites or social media sites.

They will spend a few weeks chatting with you every day and become your close friend.

Then one day, they will start talking about how they made big money investing in cryptocurrencies or forex and send you fake screenshots of trades and earnings to make you believe them, and then get you to follow them to open an account and make a deposit.

By the time you put in more and more money only to find it difficult to withdraw, they have disappeared.

4. Ponzi scheme

Also known as a pyramid scheme, scammers tear down the east wall to mend the west wall, using the money of new investors to return to the old investors, once no new people come in, the capital chain will be broken, and the person doing the scheme will probably abscond with the money.

At the very beginning, scammers will always package themselves seamlessly, they will launch a seemingly legitimate trading platform, and even the regulatory qualifications are well thought out. People who are not vigilant can easily believe that they are legitimate.

Then, they attract investors into the game by offering high returns of 10-30% and entice you to develop a downline with commissions. Once there is no new money coming in, their capital chain is broken and they will find all kinds of excuses to cover up the truth that they can't get you out of the money.

5. Forex bonus scam

This kind of scam is actually a kind of long term fishing operation, through the way of bonus to attract investors into the game. The promise that all the money earned from the bonus goes to the investor, which looks attractive.

Although on the surface these scam trading platforms have the same forex data as the real forex market, all the operations are still done in the scammers' system. The bonus does not cause them actual losses, their cost is only in the money the investor makes on the bonus.

However, most investors are generally not in a hurry to get out of the money after making money, but to invest more money, the scammers are looking at exactly what you really invested. Once the real money is in hand, they may abscond with the money at any time!

r/HitoRank - What is a Pig Butchering Scam? What should you do if you've been scammed?

6. Automated trading system related scams

Some new traders may believe in automated trading systems, which may not be too expensive. But in fact it is just a common tool under the banner of intelligent trading.

FxGecko reminds you that the Forex market is full of uncertainties; any trading instrument or platform that promises profit is suspicious! Scammers may even swallow your money under the pretext that the trading system is malfunctioning and thus causing your account to blow up.

7. Malicious slippage or unreliable payment methods

Trading platform spreads are generally 20-30 pips, some trading platforms will maliciously slip, although the money is not much, but it will accumulate.

Some trading platforms may offer some uncommon payment methods, such as the use of cryptocurrency, etc. This is very difficult to get your money back, be careful!

8. Stealing transaction information

There are some scams that take advantage of network security issues, such as phishing emails and hacking attacks. They locate their servers through some link plugins and once the investor clicks on the link, the account password that has been logged in is likely to be stolen.

There are also scams that create problems and solve them by, for example, posing as a broker to alert you that your account is locked and requires you to log back in to restore the unlock, the scammer then takes the opportunity to steal your trading information.

9. Pay fees before withdrawing funds

Many scammers lure you to deposit money and then when you want to withdraw it, they ask you to prepay various fees on the grounds of credit score, deposit, bank charges, taxes, etc. and keep delaying the withdrawal time so that they can abscond with the money.

10. Recovery Scams

Victims of investment scams are often desperate to get their losses back, and this is an easy time to become a target for recovery companies. Recovery companies will promise you that they can help you get your money back, but they are really just trying to scam you out of your money. Once you trust them, your savings will be hurt again.


How to avoid Forex scams?

These forex scams are already public, the future may also appear a lot of fancy scams, how to circumvent it? In fact, everything changes, you need to understand the nature of the forex scam, cut off from the root.

In fact, the nature of most scams is to take advantage of the asymmetry of information, the low knowledge of the forex industry among novice investors, human greed, and people's trust in their acquaintances.

So before you make a forex investment, you need to do the following.

1. Due diligence, due diligence, due diligence.

You can search on FxGecko to check the regulatory information, customer complaints, risk tips, etc. of global forex brokers and choose a regulated and legally licensed broker that has been in business for a long time.

2. Don't expose your private information online to avoid becoming a target for scammers.

3. Do not send money to anyone you have contacted only through the Internet or by phone.

4. When you encounter a trading platform that promises high returns, capital protection, and stable earnings, please be alert, there is no free lunch!

5. Be wary of forex pyramid schemes, once you enter, it is difficult to exit! Even if it is recommended by relatives and friends should not be trusted, money can make people lost.

6. Learn more about the forex market and improve your knowledge to avoid being cheated due to information asymmetry.

7. On the network of unknown links do not easily click, to protect your accounts and passwords.

8. Know your risk tolerance and only put in as much money as you can afford to lose.

r/FxGeckoAPP - What are the common schemes of forex brokers scams? Learn about these common forex scams and guard your wallet

Things to do after you got scammed

✔1. Immediately save all evidence such as all trades, money transfer addresses, wallet addresses, their website information, all your correspondence with them, emails, etc.

✔2. If you used a bank card to make a payment to a scammer, contact your bank immediately. Tell them that you used this card to make a payment to the scammer and ask if they can refund your money.

✔3. Report the scam to your local police or law enforcement and ask for help.

✔4. Report your experience to FxGecko app. Remember to provide...

  • A. Their company name/website.

  • B. Your country/region.

  • C.Your account number.

  • D. The amount they owe you.

  • E. The email response of their refusal of your withdrawal request.

  • F. What conditions must be met in order to make a withdrawal.

Be careful to edit out your private information and do not post your contact details publicly.

After submitting your complaint, FxGecko will send your complaint issue to the broker or exchange you are complaining about for a solution; as well as tell you which law enforcement you can report the scam to; and expose the scam to warn others not to be scammed.

Reminder: Don't trust individuals or organisations who claim to be able to get your money back - they may be selling hope and scamming you again. This is especially true if they ask you to pay in advance, which is a "recovery scam".

In summary, we hope that the majority of investors can

Always Stay Alert!

r/FxGeckoAPP - How to check if a forex broker is safe? What should you do if you encounter a scam broker?

Statement:
The content of this article does not represent the views of fxgecko website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!

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