What to do if you are scammed?
Starting Forex trading, you should be wary of Forex Trading Scams. Scams are becoming popular in the Forex trade market. In this article, we will educate our readers to spot a Forex trading scam.
The Forex market buying and selling scams are criminals’ tricksto scam people into investing in fraudulent overseas forex schemes. The scammers regularly promise once-in-a-lifetime funding possibilities wherein buyers could make excessive returns overnight.
The scammers regularly disappear after they’ve acquired payment, leaving buyers with nothing.
Common Trading Scams
Here is a brief description of the most commonly executed Forex trading scams;
Signal Selling Scam
It is a very common, if not the most common, scam. Many new Forex traders fall for this scam.
Signal sellers are companies that offer the best time to buy and sell currencies based on market analysis. They usually charge investors for this information. A signal seller fraud is when a company charges an investor without giving advice or revealing transaction details and then disappears. They usually promise that their data will guarantee successful transactions and great profits. More often than not, the signals turn out to be bogus as well.
Forex Automated Software Scams
Forex Robot is a software program that can automatically buy and sell currencies using algorithms.Genuine Forex Robot software may be independently tested and validated to ensure it works. Some criminals do arbitrary business and sell untested or counterfeit software to investors that can lose money. Always do as much research as you can to maximize your chances of avoiding robot trading fraud.
Forex Broker Scams
From time to time, criminals pretend to be legitimate forex brokers or existing investment platforms to trick people into investing in non-existent forex accounts. Fraudsters often use the name and registration number of an authorized Forex broker. You should always check the FSCA register and use only the contact details listed there. Fraudsters typically explain why these numbers are wrong or outdated.
Some scammers have also set up the same website to trick investors into making payments.
Forex Pyramid Trading Schemes
Forex Pyramid Trading focuses on recruiting new members to investment groups that claim to provide advice and data to help them succeed in forex trading.
Members of these programs will be charged a subscription fee and are encouraged to invite more people to participate to earn commissions. This scam makes money from membership fees, not the profits of real forex trading. This is called a rat lecture. When a new employee comes in, he moves up the rat lecture and “makes” more money.
When a member cannot be recruited, or the number of members begins to decrease, the leader usually shuts down the system and receives all the money.
Forex Ponzi Scheme Scam
Fraudsters use the Forex Ponzi scheme to promote non-existent Forex funds that guarantee high returns in the short term. They usually require a small upfront investment and pay the promised return to the first investor to show that the program was successful.
These investors are encouraged to have friends and family invest in the program. When enough people deposit in the system, the scammers disappear with the money, leaving investors empty-handed. Must checkout the latest vault markets minimum deposit.
What to do if you are scammed?
If you are scammed, immediately contact the FSCA and file a complaint to get your funds back, hopefully.
Always trade with legit brokers and avoid any shady schemes and brokers. Most people fall prey to these scams because of their greediness.