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How To Recognize And Avoid Trading Scams?

Being involved in a trading scam is a more common issue than you may think. With all the new companies opening during the Covid-19 pandemic, while the world was looking at the other side and controlling new companies was delayed, being a victim was never as easy.

Numerous firms understood that establishing their offices offshore means having minimal to no supervision at all, and they can use this to steal clients’ funds. 

On the other hand, clients were desperate to find alternative sources of income, and with Forex and cryptocurrencies spamming us from all social media, they thought this was the way. And it could be. If only they knew how to distinguish between a scam broker and a legitimate one.

How to Identify Crypto and Forex Scams?

If you have decided and are about to start investing, it’s important to know how to recognize a scammer. Here are just a few basic tips, something you can check without special effort, that can indicate whether you’re dealing with a good broker or another Forex scam.

First of all, the website should be secure. It needs to have an SSL certificate (a little padlock next to the URL), and the URL should start with HTTPS. If it has no padlock or starts with HTTP, the website itself is not secure, and any personal information you enter is exposed to risk.

Most scammers use social media to lure you into a scam. You may be invited to open a crypto wallet or be promised an award if you register. However, you’re redirected to an unknown website once you click on the link. It’s a sign of fraud.

Sometimes, you may receive spam emails about participating in initial coin offerings about coins that will be backed by governments in the future or have massive potential rising. However, this same coin has no website, no advertisement, and no proof it exists.

And in the end, if a person asking to invest needs you to input information such as credit card PIN, private keys, etc., you’re being dragged into a scam.

Scam Brokers Reviews About 5 Most Common Forex and Crypto Scams

Let’s talk about the 5 most common scam broker types and frauds they’re conducting.

1. Fake Crypto Exchanges

With the rising popularity of crypto investing, scammers have thought about creating fake exchange websites.

Once you open the site, it will look like a legitimate exchange. However, all the money that you deposit will automatically go into the scammer’s pockets, and you will stay with no coins in return. It’s important to check crypto and Forex broker’s reviews before investing.

2. Email Scam

Have you ever gotten an email saying that you’re entitled to $5,000 in crypto if you register for a wallet? Or that you’re about to win a coin that’s going to rise 50% in the next 24 hours? All these kinds of emails are fake.

No legitimate company can promise any returns, and they won’t send you spam emails whatsoever.

3. ICO

ICO or initial coin offering is another scheme performed by illicit companies. You’re seeing an ad about a coin that will be supported by the government or regulators and has lots of potentials.

You need as low as $250, and once the value goes up, you will receive the profit. If this coin is nowhere to be found and you can’t see the documents about where it will be offered, and more, stay away.

4. Social Media Scam

Something we’ve mentioned before is a social media scam. A person is approaching you via social media, promising returns if you register, or luring you into investing any other way. Once you sign up on the link provided to you, there’s a low chance you will ever see your money back.

5. Celebrity Scam

A bit different than regular social media scams are celebrity scams. Many companies use fake software to create an ad with celebrities promoting their coin or web page.

However, according to statistics, 90% of these ads are false, and celebrities have never invested in schemes. Don’t trust everything you see, and make sure you don’t fall for the scam broker.

Be Aware of Trading Fraud

Scam Broker learned about all kinds of trading scams and how clients are being lured. Don’t feel ashamed if you’re one of them. It can happen to anyone. It’s essential to rise above fraud and to report it.

Getting your money back is possible. Get in touch with us, tell us your story, and we may be able to assist you in finding the best solution. It’s time to act now!

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