7 MOST POPULAR FOREX AND CRYPTO SCAM METHODS (SCAM ALERT)

Forex and cryptocurrency scams have been a real scourge in recent years. How do scammers swindle money from unsuspecting investors? There are many methods, and new ones are constantly being developed, and the people behind these procedures often need more conscience.

In this article, you will learn how scammers extract the last penny from their victims.

What is a Forex scam?

Scam translates to “scam“. A Forex scam is nothing more than a method of extorting money and personal data under the guise of a Forex broker’s activity, i.e. offering investment services on the foreign exchange market. Services related to the stock market, ETFs, precious metals, cryptocurrencies, and asset management are also increasingly used.

Scammers are sometimes individuals, but they are often an organized group that creates a multi-person call centre to maximize their “potential” in the shortest possible time. The “lifespan” of a scam usually does not exceed a few months. After it comes to light that a given “entity” is engaged in illegal activities, its effectiveness decreases due to negative opinions appearing on the Internet and official warnings of regulators (more on this later in the article). Very often, there is a so-called rebranding (creation of a new name and website), and company X, as if after cutting off the hydra’s head, is replaced by two other companies – Y and Z – which the same people run.

Forex and Cryptocurrency Scams

As we mentioned at the beginning, there are many methods of fraud, and the business itself is so lucrative that more are constantly being invented. However, it is possible to specify a few of the most popular methods that, despite the passage of time, still turn out to be effective. But let’s start with how scammers find their victims.

Contact with an unaware investor usually takes place through:

• telephone
• email
• social media and messengers (Whatsapp, Discord, Telegram, Skype).

Fraudsters rely on the fact that by making 1000 phone calls and sending 10,000 emails or messages. Statistically, they know that using the art of manipulation, a few or a dozen people will certainly be able to “catch”. Therefore, you may receive even a dozen calls from various scams quickly.

Contact

A strange number calls us, which presents us with an interesting proposal of cooperation and investment of funds. However, the question arises – where did the scammer find our phone number? As a rule, scammers buy databases that contain numbers, and often also names and emails, which increases the chance of success on the part of fraudsters. If someone has our number and name, they probably know us, and everything is OK. Nothing could be further from the truth.

Email contact

It is the least effective method, but that does not mean it has no chance of success. A lot of advertising spam in our mailbox daily lowers the chance of clicking on a fraudulent link, but it’s still there. Scammers often tempt us with catchy email titles or impersonate popular companies we may know or even have an account with. Stealing databases of emails, collecting them through ads and simple shopping websites (landing pages), as well as trading email addresses – as a result of these activities, fraudsters most often obtain our emails.

Social Media & Instant Messaging

If you are approached by a stranger who tempts you with a unique opportunity to earn money, then know that something is going on. There are no free lunches at the stock market. You are probably dealing with a scam if someone promises you sure and easy profits from Forex or Crypto trading. We often receive messages from strangers who are wolves in sheep’s clothing and only seemingly want to establish a friendly relationship with us, but their real purpose is completely different. Be wary of messages from strangers, especially beautiful women (more on that later).

Forex Scam – The Most Common Methods

Let’s get down to the nitty-gritty of this article, i.e. a list of the most popular methods scammers use to convince us to start “investing”.

#1. On the Classics

The most common scam is a normal offer to open an investment account with favourable trading conditions. Usually, there is additional assistance in trading, a low entry threshold for incentives, bonuses, promotions, assurance of low risk, and so on. The base is a quickly created new broker brand with a simple website to which we receive a link to register. As a rule, fraudsters gain the funds we have deposited and the entire data set. Of course, there is no question of withdrawal. When you try to withdraw funds, the staff usually gets aggressive, convinces you to stay, or cuts off contact, and the money is lost.

#2. Per Clone

Attack of the Clones is not only the title of one of the parts of the famous Star Wars saga but also a scam that regularly recurs in the “investment world”. To increase their chances of success, fraudsters often copy legitimate companies’ websites, using employees’ names, addresses, phone numbers or personal data. An inexperienced investor, at first glance, even checking the information about the company on the web, may get the impression that they are dealing with a legally operating entity. But the devil is in the details, and sometimes only the details (which can be seen at first glance) can tell us that we are dealing with fraud.

#3. On the regulator

The “Financial Supervision Authority” may also be a fraud. Of course, this refers to a situation where an alleged Financial Supervision Authority employee contacts us to help avoid the loss of funds, e.g., under the pretext of receiving information from our bank about an attempt to extort funds from our bank or investment account. In the next stage, an attempt is made to extort sensitive data to allow us to enter our account and withdraw funds from it.

#4. On the Asian Girl

Did a beautiful Asian girl send you a message on Instagram? This could be the beginning of a great acquaintance… Or another scam. A seemingly friendly relationship, which can last up to weeks, turns into braggadocio about profits from the stock market, which is supposed to be helped by the eponymous Asian woman by her uncle working in an international hedge fund, without persuading, sending suspicious links, but presenting screenshots of lucrative stock market transactions. Admittedly, we have never seen the girl with our own eyes, but it is appropriate to ask: “Can I also invest like this?”. This is the question scammers are waiting for. You can probably already guess the rest…

#5. For the withdrawal of profits from the account

Forgotten bitcoins on a crypto wallet like $50 in old jeans? It has happened to more than one. Over the years, traders have been able to register with various companies, deposit small amounts of money there as a test of the service, and then forget about them. This scenario is played by some scammers looking for their victims. In short, you receive a call from company X reminding you of a certain amount of outstanding money on your old account that you can withdraw. However, to do so, you must enter your details and “unlock” the deposit/withdrawal process by making a new deposit.

A recording of such a conversation between the Forex Club scammer is presented at the end of this article.

Fun fact: when writing this article, we received a call from a scammer “to withdraw profits from a Binance account.”

As a result of many reports from users of the Binance cryptocurrency exchange who were contacted by “fake employees”, an official website has been created where we can check the integrity of a given contact – LINK.

#6. On the money manager, trading signals, automated trading

Fraudsters often come across people who would like to multiply their savings, which they lose, especially in times of inflation, but need more time, knowledge or skills. That’s when scammers come up with an offer to help with investments. All you need to do is create an account and deposit funds, and the rest will be handled by an “experienced broker”. It can also help us to make transactions on our own by sending investment certainties.

Another scenario proposes using an automated strategy (robot, EA) that records great results. All you have to do is transfer the cryptocurrencies to the appropriate wallet, and the “algorithm” will take care of the rest.

#7. With AnyDesk software

AnyDesk is an application that allows access to our computer through a remote desktop. This means that a person from the other side of the world can operate on your computer with your permission. It can be used for any of the above scam schemes, but using AnyDesk by scammers is a popular practice worth highlighting. If your broker asks you to install this application, you can practically be sure you are dealing with a scammer. Do not do this under any circumstances.

Scammers are patient and squeeze money out of victims to the end.

There are express scams, where after 1-2 phone calls, an unaware investor is convinced to start an investment, and after a few days/weeks, the matter turns out to be obvious. The invested funds are lost, and often the blame is put on “bad investments”. However, there is no shortage of more sophisticated methods that, in their scenario, assume that a potential victim who has deposited a small capital on a trial first records regular profits. This is often an incentive that makes the investor put in more capital. Sometimes, it takes a few weeks or even months to come to our senses when we want to withdraw some of our profits and run into problems. Refusals, stalling, aggression, and more begin.

There are known cases where everything takes place in an extremely pleasant atmosphere, and the only condition to receive the payment of profits is… Settlement of profit/dividend tax. However, we must do it with an additional transfer before the funds are withdrawn from our investment account. This is, of course, another lie that has only one purpose – to squeeze the last transfer from the caught victim. After transferring the indicated amount of tax, we return to the scheme from the previous paragraph, and finally, the contract is cut off.

Recovery Companies

The growing number of victims of Forex and Crypto scammers has led to companies specializing in recovering funds starting to appear on the market. Sounds like a miracle lifeline? 

Be careful!!! Increasingly, it happens that they are also scammers. After providing a complete data set and an advance payment to start activities, it turns out that… You’ve been scammed again. Sounds comical? The victims of these “companies” are no laughing matter…

However, there are companies that, over the years, have developed appropriate contacts (e.g. cooperation with banks, payment intermediaries, and cryptocurrency exchanges) and their know-how (e.g. analysis of blockchain transfers) and have specialized in recovering funds from this type of scam. However, no one can guarantee the final result, and the chances of success of such an operation often depend on many factors. 

Recovering funds from clever and skilled criminals is not easy and is not always possible. However, not fully ethical debt collection companies often use sham activities (e.g. they prepare ineffective letters and emails that have no chance of success) and lure their clients with the spectre of success only to collect (and completely legally) a commission for the steps taken.

This said a few good companies help traders receive their funds Back. 

One of them is Globalrecoveryalliance.com is a Dutch company specializing in recovering funds extorted by unreliable companies and “scams” impersonating honest Forex brokers, binary options brokers, and cryptocurrency projects. If you’ve been scammed, there’s a good chance that Global Recovery Alliance can help you!

GRA started over 18 years ago to offer expert help to people who need it.

They offer many important services to help you get back on track easily. Their team uses experienced pros, the latest tech, and strong values to meet the needs of many types of clients, including:

• Private individuals
• Institutions, both private and public
• Small businesses and entrepreneurs
• Big corporations

They focus a lot on helping clients find and return their assets quickly and smoothly, without the hassle of long court fights.

Have an issue ?, give them a call to get some advice on how to proceed

Regardless of your size, GRA’s skilled team is here to offer services like financial advice and customized support to help you reach your goals safely and effectively.

Conclusion

Navigating the treacherous waters of the forex and cryptocurrency markets can be daunting, especially for those new to the trading scene. Scammers are ever-present, deploying various cunning methods to part unsuspecting investors from their hard-earned money. From the classic bait-and-switch to the more insidious impersonation of legitimate entities, the creativity of these fraudsters knows no bounds. But, armed with the knowledge from this article, you’re now better equipped to spot and steer clear of these scams.

The essence of avoiding forex and crypto scams lies in vigilance and education. Always question unsolicited offers, double-check the credentials of any broker or investment opportunity, and remember, if something sounds too good to be true, it probably is. In the unfortunate event that you fall victim to a scam, all is not lost. With over 18 years of experience, organisations like GRA specialize in recovering funds lost to these scams. They provide a beacon of hope, offering various services to help victims recover their assets and get back on track.

As you embark on your trading journey, let this article guide you in safely navigating the forex and cryptocurrency markets. By staying informed and cautious, you can protect yourself from the pitfalls of scams and work towards achieving your investment goals confidently. Remember, in the volatile trading world, knowledge is not just power—it’s protection.

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