Perceivably, “Forex trading” is the action of buying and/or selling foreign currencies, using various technical and fundamental methods of analysis; Usually performed through a regulated, well-known and established exchange/trading platform.
The forex market turns over about $5 trillion a day (including contracts for difference- CFD). With this sizable amount of money flowing around in an unregulated market that trades rapidly, over the counter and with little to no accountability, one can begin to understand why Forex & CFD scams have remained prevalent throughout the years. Thanks to the actions taken by the Commodity Futures Trading Commission (CFTC) in the U.S, many old scams have been eradicated; A multitude of new ones keep popping up.
How it begins
This type of scam usually begins with the victim actively searching for a way to make a secondary income and/or quick profits (in some form or another) online. Attracted by flashy, over the top advertisement, the scammer lures their prey into leaving their information. According to numerous reports, after leaving their information, our clients reported incessant phone calls with very pushy representatives on the other end of the line using high pressure sales tactics all designed to do one thing: make them deposit. The first deposit is usually small in size. The scammers know not to push their luck the first time around, that is not how the “system” is set up.
Similarly to Binary Options and Crypto-trading, after making the first deposit you are transferred, supposedly, to a veteran trader, a senior account manager, a hocus-pocus money making machine.
This man or woman is usually pleasant to speak to and inspires confidence. They speak with authority and wit and give the appearance as through they truly “understand the market”.
Smitten by a mixture of pleasant conversations, positive emotions and perhaps even a “sample” of a winning trade, you transfer the next lump of coin, upon the account manager’s request (in most cases – demand).
Tricks & WHY
The tricks the fraudsters use vary and although new ones keep appearing they can be divided into two groups: platform manipulation and psychological manipulation.
Platform manipulation takes place when the company and/or account manager interferes with your active trading either by misinforming you on the right timing, hiding important trading tools like stop-loss or take-profit, misinforming you regarding overnight spreads and swap and giving you a margin call – a phone call that is supposed to instill fear in your heart by telling you that if you don’t deposit at this very moment, “all of the money in the account will be gone”
Psychological manipulation is when your alleged (insert impressive, descriptive title) advisor uses sales techniques, pushiness and more often than not, emotional manipulation/bullying with you over the phone.
Whether the firm that scammed you used one type of manipulation, the other, or a combination of both, their only goal was to “maximize your account”, i.e – make you deposit as much as possible – and then deposit some more, before leaving you out to dry.
For more information about the most common “tricks” these scammers use, click here.
Be smart, don’t lose hope!
If you have been scammed, know that not all hope is lost, in fact, quite the contrary. These firms and individuals rely on your emotional engagement with their website and more importantly, they rely on you staying passive.
There are many things we can do to assist you in recovering your money, methods of claim-back that have stood the test of time; We will fight tooth and nail until you receive every dollar back; Be it through the banks, credit card providers or even the regulatory bodies responsible for safeguarding your finances back at home.
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