Forex trading scams are more common than you think, and new ones keep popping up. In this article, I will share 6 enlightening things I’ve learned about online investment scams.
9 August 2019 | MyChargeBack – MyChargeBack has been in the fund recovery business for a few years now, and we have seen it all. In the process of speaking with thousands of scam victims in more than 150 countries, we have become intimately familiar with how scammers operate, and it ain’t pretty. We’ve also gained an insight or two into the hearts and minds of novice investors.
Finally, we have learned more than we would have believed there was to know about how banks operate, especially when it comes to processing and adjudicating payment disputes involving fraudulent investment brokers.
Lucky for you, I’m a giver, so I’m sharing some of our hard-earned wisdom with you today. Over the next couple of weeks I’ll go into detail about six particularly enlightening things I’ve learned about trading scams:
1. Lots of scam victims have no idea they’ve been scammed
This is something I might not have believed beforehand, but after witnessing it time after time, I see now that it actually makes sense. The smartest thing a con artist can do is make their victim believe that nothing dishonest ever took place, that there’s no reason to pursue justice or their lost money. The frauds get to rest easy, knowing they and their money are safe.
In the case of online investment scams, this is typically accomplished by making it appear that all the money was lost in an unlucky series of trades. The scammers are able to manipulate the trading platform, which in many cases is not even plugged into any real-world markets. It’s just a video game, and the asset values it shows are whatever the phony broker wants it to show. So when it’s time to walk away with the investor’s deposits, they just tank the account. Simple. Clever. BAD.
2. Some people who think they’re scam victims aren’t
The flip side of scam victims who don’t know they’re victims is people who are sure they’re scam victims when they’re actually not. To put it another way, sometimes a scammer will steal an investor’s deposits while making it look like the investor’s bad luck, and other times some legitimate unlucky trades look like the broker is stealing the deposits. It’s only human nature to look for someone to blame when things go wrong, so screaming, “My broker scammed me!” should come as no surprise.
So all these people come to us, sometimes a little hesitantly. Nobody wants to look the fool, and a case like this has no particularly attractive outcomes. Either you lost a pile of money by being an amateur trader (plus you think you got scammed), or you fell for a con job (plus you didn’t even realize it). Not a happy situation.
It’s our job to look at all the facts of the case, then break the correct version of the bad news to them. Tune in next week for Part 2. I promise it’ll be even hotter!