How Do Forex Scams Work and How to Avoid Them

Forex Scam

Forex is an online trading website, where people trade money, import foreign products and export their goods to another country. 

EzChargeback will be presenting in detail information about the Forex site for its customers to have knowledge of scammers and scams on this website. Forex is a wider platform with various and broader opportunities available for investors and other business people. In addition to that, online convenience has made things much easier for users, it saves time and effort. The technological shift requires one who is willing to operate his business on Forex to learn skills. Forex requires understanding of different graphs which represent the trade price in the international market as well as some cryptocurrency websites require knowledge of blockchain, a method of connecting blocks through mathematical algorithms which once done will result in the creation of profit. 

What is a Forex Scam? 

Scams are illegitimate tricks played by the scammers to perform an illegal task, EzChargeback will reveal them in this article. The scammers on the trading website work with an intention to steal investor’s money and increase their financial benefits. Forex platform itself is not a scam, however, it has multiple scammers waiting and willing to trap the naive users.

Scams are conducted using multiple strategies, the reports have also demonstrated the gangs working together to lure the investors in their traps. The lack of knowledge regarding the operation of forex transactions leads to such scams becoming a success. 

Romance scam

The most common type of scam which has caused damage to multiple parties millions and billions of dollars is romance scam. Scammers covered in the mask of lovers make you join this website and invest a big digit amount, at first you see profit coming in but eventually when you have invested a very big amount you see your account being blocked and hacked. Your money becomes inaccessible for you, even after trying, you could not withdraw the cash. 

Brokers Scam

Brokers are hired as agents who ensure the transactions are carried out properly, basically working as a communicator and bridge between investor and client. Brokers possess the skills and knowledge about online trading codes and techniques. Further, different brokers present various offers to pursue the investor to work with them, reports have illustrated that the brokers who give offers like “1000% return on investment” or “higher returns” are more likely to trap you in their cage. 

Moreover, the brokers’ demand and work ethics also demonstrate their intentions. The brokers who demand higher wages and unnecessary investments are considered to come out as a scammer. The well regulated brokers are highly recommended. 

Scams through Affected Softwares 

Another strategy is getting hold of the personal information of the users. They install malware software through links attached to the emails and social media accounts. These links are presented as an opportunity to win cash prizes or giveaways. The investors are pursued, and they end up clicking on this link to extract confidential details. 

How To Avoid Getting Scammed? 

The essential requirement for the investor to prevent such scams is having adequate knowledge and awareness regarding the forex website, EzChargeback is there to assist its users avoiding getting lured into traps. 

  1. Be Careful with the Emails

The reports have illustrated that the scammers’ emails contain spelling mistakes. Therefore, users’ should make sure to check for grammatical and spelling mistakes in emails that come from anonymous domains. The user should especially not click on any link attached without checking and validating the legitimacy of the email. 

  1. Install Anti-virus Software

The antivirus software should be installed on business and personal gadgets to avoid getting your devices hacked and losing confidential details. A businessman receives dozens of emails a day which are inevitable, as it is part of their work. However, avoiding getting your device affected by those emails is merely possible through antivirus software. 

  1. Keep money in Cold Wallet

The cold wallet is an offline method of keeping your money. If the investor keeps their money in a cold wallet, the broker or any scammer can not easily access it through online resources and technology. Therefore, a cold wallet on forex is considered less risky than a hot wallet, an online way of keeping money in an account.

  1. Check License of Broker

Each country has criteria set for a broker to get themselves registered and get access to their license. This ensured credibility and trust as the broker’s details would be in the authorities’ records, so he would not run or be unable to run. Therefore, ask for brokers’ licenses and past experiences before hiring. 

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