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- The FSMA notes that several fraudulent trading platforms offer a so-called 'affiliate programme' to consumers. These programmes exhibit signs of a pyramid scheme. These platforms act very aggressively. Scammers even try to persuade the victims to allow them to take control of their computer remotely in order to make certain money transfers.
www.fsma.be/en/warnings/beware-these-new-fraudulent-trading-platforms
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Is trading a scam?
Mar 20, 2023 · People are being increasingly targeted by investment scams carried out via online trading platforms where fraudsters offer trades in foreign exchange, contracts for difference and cryptoassets such as bitcoin.
- FCA warns of increased risk of online investment fraud, as ...
More than one in five (23%) respondents said that online...
- FCA warns of increased risk of online investment fraud, as ...
Apr 12, 2024 · More than one in five (23%) respondents said that online customer testimonies and reviews increase their trust in an investment company. Yet, scammers are known to create highly professional looking online investment platforms that feature fake customer reviews, logos, and statements, to lure in prospective investors.
Sep 7, 2022 · Common scams include the impersonation by fraudsters of genuine firms and/or products and sham trading platforms which appear to give the customer the ability to speculate on the value of assets, often cryptocurrency.
- What Is A Trading Scam?
- Where Are Investing Scams Prevalent?
- Types of Scams
- Scam Stories
- How to Avoid Trading Scams
- What to Do If You Think You Have Been Scammed
- Bottom Line on Trading Scams
Trading scams often advertise “too-good-to-be-true investment opportunities” as a way of convincing you to part with your money. This can come in many forms and may not be glaringly obvious at first sight. Some clever fraudsters integrate trading scams into services such as acting as a signal provider, educator or auto-bot service. Nonetheless, a t...
Social Media
Online investing scams are not limited just to forex brokers. The growth in social media popularity has shifted interest towards using these platforms to target individuals. Fraudsters typically promise substantial financial returns using imagery of luxury items, such as cars or boats to “demonstrate their success”. Alternatively, fake quotes from celebrity endorsements are used to entice people. These ads then link to professional-looking websites, where consumers are often persuaded to inve...
Online Search Engines
Prospective traders are also targeted by unauthorized brokers offering forex, commodity futures, binary options or stock trading with a promise of guaranteed returns. Many of these unregulated or dishonest firms will rank highly on popular search engines, such as Google, for searches related to investment opportunities. Investing scams can be difficult to determine at first look, particularly when using registration numbers and seemingly top-tier regulatory oversight from the FCA, for example.
Telephone
Another way you may experience trading scams is via the phone. Although you may think investment scams are only really a risk via trading platforms or on brokerage sites, some fall into the trap via the conventional phone line. Companies may call and offer high-risk investments with significant returns or shares in an organization with strong ESG values. Never give financial or personal information out to anyone who cold calls you on the telephone. Be cautious and, if in doubt, hang up.
Forex Trading Scams
Investing in forexis particularly risky in terms of scams and fraudulent activities. Technology advancements mean there are limited barriers to entering the online market as a retail investor. Trading scams are prominent in the forex scene, whether they be through brokers, services or tools. It can often be difficult to determine if a service is legitimate, particularly when sourcing a new company to invest with. Internet trading scams open up a whole world of risk. Our experts found and pull...
Insider Trading Scams
Although not directly related to short-term trading, insider investment scams are another fraudulent activity to be aware of, particularly as they can cause significant volatility in share prices. Insider trading scams incorporate the illegal use of private information available only to internal shareholders (not the public) to make a profit. One of the biggest insider trading scams came to fruition in 2006 in the case of Enron, an electronic trading website focused on commodities. The compan...
Cryptocurrency Scams
According to the Federal Trade Commission, more than 45,000 international retail traders reported losing over $1 billion in crypto to online trading scams, with an average reported loss of $2,600 per person between 2021 and 2022. As there are no financial institutions or centralised authorities overseeing transactions or intercepting fraud, cryptocurrencyis a major player when it comes to trading scams. Many online traders report these scams originating on social media channels, including via...
GS3 Trades
A viral video of a young man named Gurvin Singh Dyal giving out cash is where this began. The Instagram influencer had racked up an impressive 125,000 followers, many of these young individuals. Gurvin portrayed his wealth with images of expensive jewellery and fast cars, indicating these came from his success with forex trading. Gurvin introduced investment courses via his company GS3 Trades. He would essentially invest on the behalf of individuals to replicate some of his so-called successe...
Get Rich Quick
Instagram forex and Bitcoin trading scams are also common schemes to look out for. The scammers often direct message individuals with the promise of high returns and “real” success stories. The scammers would then start sharing fake messages and screenshots on social media, where they would show that, thanks to an amazing Bitcoin mining strategy, they had managed to make significant earnings in just a few days. Here is where the snowball effect starts. Once the perpetrators receive payment, t...
Milton Group
Celebrity impersonations and features are often used to sway individuals to invest. A group of more than 100 ‘investors’ based in Ukraine operated a call-centre-based scam that promised enticing opportunities to make significant profits. The fraudsters used well-known global celebrities, such as Hugh Jackman and Gordan Ramsay, as their story-telling leads. The supposed investments in forex, Bitcoin, and commodities were fake. Once signed up, individuals were shown fake accounts demonstrating...
Bear in mind that only trading scams and confidence schemes will promise huge profits or substantial returns on investment with very little effort or time. No trade is ever guaranteed to make money, let alone big money. Moreover, when we use trading platforms, we find that reaching a high level of success requires dedication, hard work and time. If...
Despite the list of online trading scam stories and ways to protect yourself from foreign exchange fraud, many traders still find themselves at the hands of misleading individuals and firms. So, what to do if a company scams you?
Trading and investing scams are a dangerous reality in the world of financial speculation. While there are ways to protect yourself and limit your risk of having your money stolen, you should always stay vigilant. While brokerage websites and training academies are some of the more popular media for trading scams, you can also get caught out via th...
Fraudsters now use platforms such as Facebook, Instagram and Twitter to lure people into investing in cryptocurrencies, foreign exchange and binary options. The scammers often have convincing social media profiles or websites with bogus reviews.
May 21, 2019 · The Financial Conduct Authority (FCA) and Action Fraud are warning the public to be wary of investment scams carried out via bogus online trading platforms. This warning comes as cryptoassests and forex investment scams reports more than tripled last year to over 1,800.
Jul 28, 2021 · "This has left many scammers untraced, un-investigated, and unpunished. Many get away with these crimes with impunity." A pensioner caught up in an investment saga lost it all, prompting warnings...
