Forex scams are one of the most common types of financial scams. Forex scams can happen through emails, on social media, and even in person. Most forex scams try to get you to invest your money with an unknown company, using a fake website or office address.
It’s important to know the warning signs of a scam so you don’t fall victim. To help you avoid being scammed in this way, here are some tactics that might be used in forex scams.
Scammers might try to get you to invest in an unknown company.
If you are contacted by someone claiming that they want to help you with your trades, that person isn’t necessarily legitimate.
Don’t be afraid of losing money because the forex market is volatile and can make or lose a lot of money in a short amount of time.
If something feels off about the person who is contacting you, don’t do business with them. Forex scams are oftentimes about taking your money for something that doesn’t exist.
The Psychology of Forex Scams
The psychology of forex scams is one of the most important things to keep in mind when you’re trying to avoid a scam.
Usually, people will be enticed by promises that they can make a lot of money really quickly, with little to no work required. This could be through claims that the company has a secret system or method that can generate huge profits without effort.
If you get an offer like this, it’s important not to invest your money until you’ve done your research and are certain about what the company is selling. If there are too many red flags and you don’t have time for further research, then it’s better to take your chances in the stock market than with any type of forex scam.
Tactics Used in Forex Scams
One of the most obvious warning signs that a forex scam might be happening is when the company claims they’re offering a safe, guaranteed investment. Another sign is when the company claims to have an international presence and users are asked to send money internationally.
Another tactic commonly used in scams is asking for personal information such as your ID number, address and phone number. Scammers might also ask for your account numbers and passwords. They might have a website with official-looking information on it but might give inconsistent answers about their identity or business.
A final tactic used in forex scams is asking you to wire money or transfer it through Western Union. If you’re asked to wire money or provide your bank account information, don’t trust them. These types of companies might try to steal your money by taking out a “service fee.”
Protect Yourself From Forex Scams
1) Never, ever send money to someone you don’t know.
2) Search for the company online. If you can’t find it and the company is asking for money, it’s probably a scam.
3) If the company has a website and they only have text on it, you should be wary of the website.
4) Don’t go with an offer that sounds too good to be true.
5) Don’t respond to emails with questions or requests for personal information from strangers.
6) Never transfer funds using Western Union or MoneyGram unless you’re absolutely sure what’s happening in the transaction.
7) Keep your computer safe by updating your software frequently and installing anti-virus software on your computer