Many ask themselves, “Can you get rich by trading Forex?”. While the financial gains of trading the Forex market seem lucrative, it cannot be considered easy. Having a sound trading education, a properly funded trading account and an understanding of risk management techniques are essential.
Unfortunately, many unscrupulous people will try to scam individuals through Forex trading scams. Forex scams will be around for as long as the Forex market exists. As schemes are evolving, scammers are always somewhere nearby, trying to steal your money. But could there be a solution to this problem?
In order to better help foreign exchange investors identify scams, the editor summarizes four common scams in the foreign exchange market:
- Funding fraud
Fraud analysis
The fundamental feature of the capital disk is that it usually has an attractive dividend mechanism, and it continues to develop offline by rewarding dividends and other methods. And once no new traders participate, the entire capital chain will face collapse, and the platform will do its best to absorb the last wave of gold before running away, and the latecomers will become “takers”.
The overall routine is as follows: - Promise high returns, high returns, and absolute stability;
- Let the first investors taste the sweetness, encourage them to work hard to develop offline, and calculate dividends according to “heads”;
- As more and more people join this game, a huge capital pool is established, and black-box operations are carried out in the name of “speculation in foreign exchange”;
- The capital chain is broken, but never admit it, use fake MT4 to loot the account, and search for new funds until the last moment.
- Fake foreign exchange APP scam
Fraud analysis
The process of this type of scam is currently highly unified, and its distinguishing feature is that it allows investors to make quick and substantial profits, and then conducts the second round of harvesting by charging various “withdrawal fees” in various names.
The overall routine is as follows:
The first step: all kinds of false propaganda and high profit temptation to attract investors;
The second step: first give investors a little sweetness to win trust;
Step 3: Constantly encourage investors to increase capital investment, and back-office operations make investors quick and rich, usually the account is doubled or even dozens of times within three days;
Step 4: Strike while the iron is hot, seize the investor’s eagerness to withdraw funds, and charge “withdrawal fees” for various reasons, and some investors are repeatedly deceived;
Step 5: Lost contact, the APP changes the vest to continue a new round of deception. - Group Calling Scam
Fraud analysis
The main way of calling scams is to form groups, pull people, and maliciously call orders. Simply form a foreign exchange calling group, or use a stock group as a guise, and then introduce investors into the foreign exchange black platform. Usually, there are N people in a group. Entrusted to echo.
The overall routine is as follows:
Step 1: Cast a wide net, and add friends based on the conditions of high yield, low entry threshold, and steady profit without loss;
Step 2: Pull into the shouting group, share the fake profit data chart, and a group of trustees in the group agree;
The third step: call for a single transaction, give some sweetness first, and let people relax their vigilance;
Step 4: Find ways to entice investors to add gold! Add gold! Add gold! ;
Step 5: Investors either have their accounts liquidated, or are unable to withdraw funds, calling for the group to dissolve and disappear, and start a new business. - Fake dealer scams
Fraud analysis
The scams of fake dealers are the most common in the foreign exchange market and are integrated into all kinds of scams. The above three kinds of scams are also based on fake dealer platforms.
The overall routine is as follows: - Package yourself as a platform with compliance supervision, either by cloning the regulatory information of other compliant traders, or claiming to have compliance supervision only with the registration number of a regulatory agency, or even directly fabricating regulatory information;
- Attract investors with high yields, emphasizing fast withdrawals;
- Use counterfeit MT4 software to operate in the dark, causing losses, or malicious hedging operations;
- Set up various withdrawal barriers;
- Eliminate the profit of the investor’s account, and ban the investor’s account.
How to avoid:
One: Be sure to verify the compliance of the platform before depositing money, and stay away from all fake foreign exchange dealers
Two: foreign exchange investment itself is a risky thing, don’t believe all the propaganda of “high yield” and “guaranteed yield”!
Three: Investing must have its own judgment!
Whether it is a compliant foreign exchange platform or a black foreign exchange platform, it will claim that it is under national supervision and legal protection. Investors can follow the clues to verify, be sure to verify before considering depositing!
