Forex trading scams are more common than you think, and they can come in a number of different forms that are often difficult to recognize. In this guide, we’ll cover the most common types of forex scams, how Funds Recovery Experts can help victims and how you can avoid being scammed in the first place.
Forex trading scams have been around for decades, as brokers seek to take advantage of inexperienced traders. The first documented cases of forex trading scams were in the 1960s, when a broker called Joe Ross opened an office in New York City and sold bonds that he falsely claimed were backed by gold. More recently, scammers may use high-pressure sales tactics or market-rigging methods, such as fake news stories or other false information designed to artificially move prices down at just the right time.
There are many ways that brokers can take advantage of you during a trade, but there are also steps you can take to avoid being scammed.
What Is Forex Trading scam?
The Forex market is the largest financial market in the world, trading an average of $5 trillion daily. People all over the world use their day jobs, or even quit their day jobs, to trade Forex full time. This is because it’s a very lucrative way of making money with minimal risk, unlike stocks or futures. There are risks in Forex trading as there are in any other investment opportunity, but it’s a great way for beginners with minimal investments to start making some money. The biggest problem people have when they start Forex trading is that they don’t know how Forex brokers operate and what they should be wary of when dealing with them.
Why People Fall Victim To Scammers
There are many reasons why people fall victim to scammers. Some think they’re too savvy, while others are just fooled by the scams themselves. Others don’t know how Forex trading works, or may not be able to tell what’s a scam and what’s legitimate advice. One of the most common reasons for falling victim is that we don’t want to believe that there is someone out there who would do something this malicious. Another reason is that we want easy money, and we think this will be our chance!
Ways To Prevent Yourself From Falling Victim To Crypto Pump and Dump Frauds
If you want to avoid falling victim to crypto pump and dump frauds, always do your research before investing in any token. Read up on the company’s social media accounts, check out their website, review their whitepaper if they have one, talk with them on Twitter or Telegram, read reviews online – anything that will give you an idea of how trustworthy the company is. Be wary of companies that require you to buy tokens but offer no way for you to sell them again; these are most likely scams.
The Most Common Cryptocurrency Trading Scams And How To Stay Safe From Them
There are many ways that cryptocurrency traders can get scammed, but here are the most common ways we’ve seen.
Pump-and-dump schemes: These scams operate by artificially inflating the price of a low-value cryptocurrency with little trading volume. The scammer will then sell their coins at the inflated price, which triggers panic buying from other traders who don’t want to miss out on an easy profit. When the frenzy dies down, the price falls back down again and investors lose money.
Fake exchanges: These scams operate by setting up a fake website that looks like a real one.
Ways Of Getting Your Crypto Back After You’ve Been Scammed And The Other Options Available For Recouping Losses
If you’ve been scammed, there are a few ways of getting your crypto back.
First, if the scammer has not moved your funds, you can file a complaint with the website that was used to trade on or with the government agency that regulates financial activities in the country where the scammer is operating.
Second, if the scammer has made transactions after stealing your funds, you can contact law enforcement authorities.
Forex trading scams are not a new occurrence. They have been around for a long time, which is why it’s important that you arm yourself with the knowledge of how they work and what to do if you believe you’ve been scammed. The best way to avoid being scammed is by doing your research and only investing in those who are regulated by the CFTC or SEC. In case you faced any kind of scam, don’t waste your time contact Funds Recovery Experts.