Welcome back dear loyal readers of Invest In The Stock, we are always very happy and satisfied to have you here with us again, honored by the affection you show us every day. In today’s article, we will talk about online trading scams. We will see how to recognize them, what to do if we discover something suspicious and how to defend yourself.
What is online trading?
Let us now briefly see what online trading scams are. This specific term refers to all investment activities that are based on financial markets.
In these Forex markets, investors, who are also referred to under the pseudonym of online traders, can buy and sell various types of assets, such as stocks, bonds, stock indices, Forex currency pairs and other financial products, using different economic instruments.
As such, the main income for online traders comes from the difference between the purchase price and the resale price of the product in question.
Basically, online trading means speculating, or analyzing the sector and playing on the fluctuations in the values of the products present on the financial markets.
👉 You might be interested in: Forex Currency Pairs
Online trading scams
Unfortunately, due to the growing number of people who have started investing in online trading, Forex scams have also substantially increased.
For this reason, knowing how to recognize the techniques used by scammers in the field of online trading to deceive investors is essential to defend yourself and avoid unpleasant surprises.
In our daily article, we will try to understand the techniques that these scoundrels adopt to lure many users through the use of illegal and fraudulent sites.
👉 Must Read: Best Online Trading Platform 2023 For Investing
Risks in online trading
More and more frequently, especially in recent times, we hear about these notorious online trading scams that seem to be spreading like wildfire.
Many cases of illegal platforms, perhaps managed by financial brokers located on the other side of the world, usually at the head of companies that have offices in exotic destinations, fake sites and false promises of very profitable investments.
Emblematic are the most recent cases of customers defrauded by brokers, with fake investments in the purchase of Amazon shares or those linked to Bitcoin and other phantom cryptocurrencies, which later turned out to be a real rip-off.
Because dear friends of Invest in The Stock, testimonial online trading scams are more widespread and frequent than one might think.
👉 Read also: Investing In Cryptocurrencies
Online trading scams and cybersecurity
According to the latest report of the European Commission in the field of cybersecurity, about twenty percent of users in the European Union have had and experienced various problems in terms of security.
While in recent years, about thirty-five percent of users have received deceptive trading e-mails or phone calls, where explicit requests for personal data or insistent proposals to invest money in unspecified products were made.
A clear example of this type of online trading scams are the insistent and continuous phone calls regarding Forex, and in the majority of cases, these calls come from numbers in foreign countries, among the most common we find the United Kingdom, India and the countries of the Balkan area .
Even the data regarding the United States market are not the best, given that according to the Federal Trade Commission, also known by the acronym FTC, about 7,000 people have seen more than 80 million dollars stolen through online trading scams and in cryptocurrencies, in the last two calendar years.
Therefore, we strongly advise you to start studying the Forex trading sector well, in order to then be able to recognize the techniques used by these subjects to deceive unwary investors.
Scam techniques in online trading
Online trading scams usually seem to have fairly well-tested and similar techniques to each other, even if the means used can change from time to time.
One thing is certain, the sole objective is to look for users who seem more suitable by profile and offer them investments in stocks, cryptocurrencies, forex trading or especially in recent times, binary options, NFTs and metaverse, obviously promising, stratospheric earnings in a short time, guaranteeing that the invested money will not be lost, rather multiplied.
Consequently, contravening the basis of any type of investment, that is, that there are no activities in this sector that do not involve risks.
So let’s see below the main elements that those who make scams in online trading use most frequently.
👉 You might be interested in: Sport Trading Strategies
Promises of easy and quick profit
The first thing scam brokers aim for, trying to make you fall into their trap, are the promises to increase your current account in no time.
More often than not, saying to click on certain links on dodgy sites.
Therefore, this is one of the most widespread practices and which alas, gets more results from digital swindlers.
Another widespread technique, which is often used with the previous one, are the keywords.
In fact, if by telephone they try to reassure the victim about the success of the deal on the fake trading platforms, they tend to focus on entry bonuses and free trial periods, emphasizing and reassuring that the invested capital will not be lost but increased .
The common modus operandi for these scammers and, therefore, one of the greatest risks in forex trading is obsessive and continuous marketing, which gradually becomes more and more aggressive.
It starts by sending text messages and phone calls where the operators try to get the customer to invest small amounts of money, in exchange for sustained earnings.
These techniques, which are very often combined with each other, have a definition, it is called social engineering and is based on the monitoring and manipulation of individuals’ behavior.
On the other hand, the main purpose of these methods is to steal as much confidential information as possible, to subjugate users.
Well dear friends, we at Invest in The Stock, want to advise you to always pay close attention when you receive suspicious phone calls or messages, because they are easily online trading scams.
Finally, we advise you to consult the Consob black list, or the fraudulent broker list, in order not to run into disreputable platforms and sites and avoid online trading scams.
Invest in The Stock, The Editor
© REPRODUCTION RESERVED