The money that is invested on your CFD trading account is precious as you have worked so hard to have it. The very reason why most people choose to invest in trading instead of saving on the bank is to have something to keep them busy while earning conveniently in their homes. Yes, online trading is indeed a booming source of income and hobby for everyone but the threat of fraud trading platforms and agents do not sound so good. In this post we will disclose 4 investing scams and suggest tips on how to avoid being their victims.
Pyramiding
This scheme is done when you are asked to invest and then recruit someone in order to get an income aside from the regular income that they offer you through their products. This type of scam is easy to spot as the agents merely focus on the promise of earning huge profits in a short span of time. The greatest pitfall of this act lies when the members of the lower level fail to recruit new members.
Offshore scams
Majority of traders coming from the 1st world countries such as the US, Canada, UK and Europe are the main targets of this type of fraudulence. In here, the agent of a particular company will get in touch either via phone call, email or written message stating that they offer offshore services for trading assistance. The moment you sign up to their program, they do not give genuine services, they will only extract money from you by pretending to be legit financial advisers from an offshore company.
Cryptocurrency Scams
For this type of scam, the scammers have so many ways to get in touch with their victims. One example is through telegram bots. With this bot, the cryptocurrency holders can check their balances by messaging the bot. Instead of getting a real information, the bot sends a fraudulent information. As they conduct a balance inquiry session, the bot keeps giving them updates that their account increases by 1% in an hour. Because of this, account holders spread the news via social media not realizing that the message they get from balancing is not real and it could pose a threat to their security.
Forex trading scams
Given the fact that Forex and CFD trading are trades that are related to each other, scammers try to hide themselves either as CFD or Forex Brokers. These brokers are ones who don’t have affiliation to legit forex trading groups. Moreover, they are the ones who offer very high leverage and convince you to grab it because it is the best way to earn profit.
Conclusion:
The trading world is an environment that is prone to scamming and fraudulence especially now that the sessions are usually done online. In order to avoid being a victim to these unlawful acts, it is important to conduct thorough background study on a specific investment before being involved with it.