March 29, 2024

Forex, cryptocurrency and stock market fraud schemes

It is easy to lose money in financial markets as a result of your own wrong actions, buta number of people are engaged in deliberate “scamming” of gullible clients, acting according to well-established schemes.

This article was written by a blog reader who lost about 9,000 euros as a result of fraudsters.

1. Overflow of accounts

For this purpose it is necessary to find two or moreinvestors with equal deposits or consolidate accounts approximately equally. Buy is opened on one account, sell is opened on the other. Sometimes this is again done for the entire deposit, as a result of which one deposit is merged and the second is doubled. They say goodbye to the merged investor, saying, sorry, it didn’t work out, but they share the profit with the lucky one. I have practically never encountered such facts in real life, but I know that this happens. Although most often the manager loses the investor or PAMM account as a result of his own mistakes, overtrading, etc.

2. Pseudo-brokers

These guys discover fraudulent resources andthey start calling people with cold calls, promising easy money, appearing to be experienced brokers and cool managers. They are trying with all their might to force the client to open an account for a small amount and earn a small profit for him.

An automatic adviser is allegedly hung on the account,who himself opens deals or is given an "experienced" manager who makes deals or gives recommendations to the client. Earn immediately almost always.

-See how easy it is? Passive income, you only need to fund your account!

As a result, people take out loans, go into debt andafter this, the second part of the Marlezon ballet begins - the clients’ accounts are simply “drained”. Often during the drawdown process, unprofitable trades are locked and asked to top up the account in order to get out of the drawdown. Sometimes they even supposedly top it up with “their” money. In fact, no transactions are displayed on the interbank market or the market; everything is drawn in the kitchen terminal according to market quotes, but without output to the real market. The money has already been “cut” by scammers and they will milk the client to the last. Some are milked for years.

But not everyone cheats so blatantly.Forex, cryptocurrency and stock market fraud schemes

According to statistics, 95% of customers levy funds - inthe result of their own mistakes. Therefore, it is not necessary to bring deals to the market; it is not profitable. It’s easier to appropriate funds. But if the client earns something, then everyone will get him out without problems. The exception is if the client suddenly made a lot of money, and there was no place for the broker to take it, they were not brought to the market. Then the problem arises.

3. Pseudo-investments

Other companies open supposedly an investment service, for example, this was the case with Forex Trend, MMCIS and Panteon Finance. These fraudulent schemes have worked for about 5 years.

They had fake stewards who paintedstable profitability in order to attract investors. When the organizers of the pyramid decided to curtail their activities, the withdrawal of money stopped under the pretext of technical problems, updating the system, or something like that.

People were fed breakfast and only throughHalf a year or a year, it became clear to almost everyone that money could not be received back. But even then, they still tried to cash in on the deceived investors by organizing a new broker who allegedly accrued bonus to all the victims. "Bred to the headstock" again.

If you want to trade forex, cryptocurrencies,stock exchange - choose proven sites, look for reviews on the network, ask friends and choose old and trusted companies. You can not borrow. Trade on your own and only on the amount that you are not sorry to lose. And if your manager has made a drawdown - to replenish the account in order to save the remains - it is not necessary.

If you are deceived, contact the law enforcement authorities. But the money will most likely not be returned.

Other online scams can be found in the article Internet Fraud: 14 Types and Schemes of Online Fraud.

Original post on my blog.