Social media is an ideal place to socialize, promote your business and discuss life-changing products and services. It has also become a place people push forex trading scams and romance scams. Like the rest of the internet, social media can provide many benefits but also has traps waiting for unsuspecting consumers.
Staying safe on social media means safeguarding your information, being careful about those who initiate communication, and avoiding aggressive promotions. Although Facebook and Instagram are important marketing resources, financial services should have more than a Facebook page to prove their credentials. Researching brokers carefully can keep consumers safe from forex scams on social media.
In this risky environment, you need to stay safe. Trader Defense Advisory experts will help you recover from forex scams, and other forms of fraud. Contact TDA experts who are experienced in dealing with all types of scams, can help you file a claim with authorities, and provide guidance in the fund recovery process.
Ten years ago, most forex trading scams operated through fake websites. Although some scammers still have websites, a site is no longer necessary. Many forex scams and crypto scams operate directly on social media. It is estimated that 50% of forex scams find their victims on Facebook, Instagram, Twitter, and other social media platforms.
The increase in social media forex scams is connected to COVID-19 when people were stuck at home and spending even more time than usual on social media platforms. In addition, many people had lost their jobs or were underemployed during the pandemic and were looking for new ways to make money. This caused forex trading scams to flourish.
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There are numerous examples of social media forex trading scams, but many have a basic pattern. It should be noted that TDA experts often warn consumers that social media is not the best place to find a broker. Doing due diligence and researching brokers thoroughly is the best route to avoiding forex trading scams.
A company or fake broker will post about a forex opportunity that will give huge returns in a short time. In some cases, the scam broker will message people directly and will claim that they can guarantee double or triple the initial investment. They will ask for a deposit to their bank account or will ask for cryptocurrency.
After a period of time, they will either make an excuse that the trade failed or that they can get an even bigger return by depositing more money. If the clients want to withdraw their money, they are told they need a huge minimum deposit before their funds can be released or they will have to pay hundreds of dollars in fees.
Basically, the forex trading scam will hold onto the original deposit until the person keeps sending more money to trade or in fees. When the client demands their money back, the fake forex trading scam will either make an excuse or stop communicating with them. Sometimes, they will claim that the funds have been refunded but the money never shows up in the bank account.
There are some steps you can take to stay safe from social media forex scams:
One way to avoid social media forex scams is simply to avoid them. Basically, avoid trading with brokers who use social media as their primary form of communication. Some of these fake forex services have social media pages and no websites at all. Without a web page, there is no way you can do full research on a broker.
Only work with a regulated broker. If a broker is regulated, you can file a complaint with a regulator and if necessary, the regulator can take disciplinary action against the broker. If a broker has no license, then there are only limited means to track down the broker. Of course, you can contact the authorities, but a regulator can take more immediate action and take the license away from the broker if needed.
Another feature many social media forex scams have in common are extravagant claims and guaranteed returns. Anyone who trades forex knows that returns can’t be guaranteed. Forex is a volatile market and losses can happen because of unforeseen events. Guarantees of 100% or 200% returns are not only excessive, promising any returns for a volatile trading vehicle is a sign of a dishonest broker.
As said before, if the forex service has no website, avoid them. If they do have a website, do a thorough examination of the website. Look for licensing, the About Us page, and information about accounts, fees, spreads, and commissions. Check the contact information to ensure it is accurate. Test the customer support service to ensure they are prompt and helpful.
Legitimate brokers will offer various payment methods, such as credit cards and online payment platforms. Social media forex scams may ask only for cryptocurrencies or bank transfers. Cryptocurrency transactions are anonymous and can hide scams. Wire bank transfers can be difficult to recover, although TDA experts will advise you on the fund recovery process even if you have paid through wire transfer.
If you have lost money or data to a social media forex scam, it is important to repot the problem and do something immediately. TDA professionals will consult with you and provide you with guidance on how to pursue your claim.
If you have been the target of a social media forex scam, talk to Trader Defense Advisory. Our team has vast combined experience combating all types of fraud. Consult with us and we will create a claim and help you get started on the path to fund recovery.