Social media Forex Scams
Social media has changed the way we communicate, educate ourselves, work and play. It has created a connection between people all over the world and has revolutionized marketing. There are some drawbacks to social media. Unfortunately, forex trading scams and crypto scams use social media to find new victims.
Cold calling and spam emails are not necessary anymore–all fraudsters have to do is to provide extravagant promises about huge returns on social media. There is no need to create a professional-looking fake website–all scammers need to do to set up social media forex scams is to open a social media page which can take minutes.
Consumers want to do things with the click of a button or a link. Providing convenience can also make it easier to cheat people in social media forex scams. A bad link can force consumers to download malware onto their devices. In addition, it can encourage people to skip the research and sign up with brokers without doing due diligence.
Broker Complaint Registry is the right place to turn when you need guidance filing a complaint about a social media forex scam. We consult with clients and refer them to experts who can pursue their case in detail and work to investigate the broker or scam, and in many cases, succeed in fund recovery. Talk to us today, and we can provide guidance on how to deal with the claim.
What Are Social Media Forex Scams?
Social media forex scams are forex deals provided directly on social media. Not too long ago, prospective targets were encouraged to go right to a website and sign on the get an account. Now social media has reduced these scams to one step.
Social media forex scams are different because they offer what they describe as urgent deals that need immediate action. This creates a sense of haste that can rush potential clients through the process and pressure them to send payments directly to a fake broker’s account. There is no platform and therefore, no oversight involved,
In addition, it saves scammers the trouble of having to construct a decoy trading platform or site. They simply say they have a great forex deal and prospective traders need to send money immediately. In return, they promise absurd levels of returns of 100% to 300% or higher.
The Rise of Social Media Forex Scams
Why do so many people fall victim to these scams if they do not involve a proper brokerage account, website or platform? Why should they believe someone who claims to give them insanely huge returns?
Scammers don’t bother to appear quite as legitimate as they did in the past because they are dealing with larger numbers of potential targets. Social media provides scammers access to so many people, that it hardly matters that their methods may seem transparent. They will always be able to catch enough people to make it worthwhile and disappear without a trace.
Another thing working in the favor of social media forex scams is the psychology of risk. One reason brokers focus on high-risk assets such as forex trading scams, crypto scams and CFDs is they can explain away lost funds by saying the trades lost.
Another aspect is understanding that these traders may be ready to accept losses since they are prepared to undertake risky trades in the first place.The idea is that they may be less upset or surprised if they lose and may not pursue scammers so aggressively.
The scammers also rely on potential self-blame that may accompany these losses and the notion that traders took on the risk and they knew what they were getting into. In the case of a social media forex scam, they did not plan to get involved in a scam.
There is a huge difference between taking legitimate risks in forex trading and being the victim of a crime, such as fraud. Risk is fine and many people find excitement in making high-risk trades. However, this appetite for risk should not be exploited in the form of social media forex scams or other types of forex trading scams. It is important to file a complaint about social media forex scams.
How do Social Media Forex Scams Work?
A social media forex scam works by introducing a deal on social media. The scammers will do this under a fake name of brokerage service. If traders do research on this brokerage, chances are they will not find a legitimate website. However, the trading scheme is something that usually needs to be acted on right away, so most victims do not do research.
They are told there is a great forex trade they can make not by opening a brokerage account, but by sending money directly to the broker. They will usually ask for money through cryptocurrency, which is anonymous or a wire transfer, which is hard to reverse.
They are also told that the trade has to be made right away or the opportunity will disappear. However, the only reason the opportunity will disappear is that the social media platform may shut them down once they realize there is yet another forex scam on the platform.
Once the customers have sent the money, the fake broker has the leverage. They often go away entirely or they provide some excuse about the trade failing. They can hide their identity easily because they never provided a real persona in the first place. That is where professionals are needed to track the scammers down.
- Invest in an ICO only on an ICO platform
- Research the people or company behind the ICO
- Do not send money to personal accounts
- Ensure there are payment options
- Do not be fooled by a sense of haste
- Do not click directly on links
How to Avoid Social Media Forex Scams
The one way to avoid social media forex scams is, simply put, to avoid them. Do not trade money with any but a regulated, top-tier broker and by setting up a brokerage account on a website or through an actual person. Verify the broker has a good reputation and that all contact information and licenses are up to date and authentic.
There is no guarantee that a licensed broker won’t cause problems, but avoiding fake brokers who work entirely on social media is the best way to avoid this type of fraud. Also, even if you are enthusiastic about cryptocurrencies, do not pay a broker in cryptocurrency, because it is harder to track these transactions down.
Have You Been Cheated by a Social Media Forex Scam? Broker Complaint Registry Will Help
Contact Broker Complaint Registry experts if you need assistance creating a complaint about a social media forex scam. We deal with a variety of issues, including forex trading scams, and crypto complaints. Our team will refer you to experts who have vast experience dealing with regulators, banks, and law enforcement. We will provide advice and give you valuable guidance to help you resolve the issue.