It is very unfortunate but scams have been part of traders’/investors life from the time when forex trading became popular many decades ago.
In the last decade or so, scammers started manipulating the financial market for their gains and that figure runs into billions of dollars. Even now, the figure is quite high. According to studies, traders lose millions of dollars to forex scams in Europe, the UK, and the USA alone. These scammers have now diverted their attention to European countries.
The forex scam is common even when the markets are supposed to be regulated by professional bodies of different countries. Many factors have sprung up in recent years and one of them is the rise in web-based trading. Another factor is people want to “get rich quick” which is more prevalent in European countries. Rising social media usage is also one of the factors that help scammers commit fraud.
One of the main culprits is Web-based trading.
Forex trading has opened its doors to web-based trading or trading through the internet. It has it plus and minus points. Previously forex trading was largely an exclusive sector where only a few traders used to be involved. Because of the internet, anybody can start trading from anywhere. Web trading has demolished boundaries between the nations. Many legitimate brokers have taken steps to combat scams and enhance security. They also ask KYC to identify their clients better. This does give the confidence to the trading community who are using their sites as they are on a different level from criminals and money launderers.
The other side of the coin is there is no human interaction when anyone wishes to place a forex trade. The critical movement to spot that something is fishy with the broker is gone forever. Nowadays scammers can develop highly sophisticated websites, which are virtually carbon copies of the original sites. That is why it is a good notion to check websites and read scam reviews on our site before investing or trading. Our site contains reviews of many scam brokers and is better to avoid those sites.
Role of demand and supply is increasing frauds in Europe.
The demand for forex trading has skyrocketed in Europe. And the supply of scam brokers has also increased proportionally. Because of the high demand in forex trading, scammers take benefit of the circumstances. That is why many people are vulnerable to becoming victims of fraud. Nobody wants to be scammed willingly by forex brokers, and wants to go through a bad experience.
The deregulation of the financial market started in the mid-1980s and people thought it is possible to get rich quickly by investing/trading in the forex asset class than any other asset class. These ideas were fuelled by movies “The wolf of wall street” and a few other movies. This created a perception in people’s minds they can make good money by currency trading.
For a fraudster, it is a readymade market and they people exploited for their financial gain. Fraudsters very well know that whosoever enters the market cannot always walk away with a profit. With help of social media tools, they produce an image of a perfect and rich life everyone can enjoy through forex trading. People jump into this trade seeing those “created images”. It will take time for people to change their mindset and that is not happening in near future.
The Internet plays a big role in propagating forex scams as everybody can access opening new accounts with the scammers easily. There is no human interaction as accounts can be opened from anywhere. Many people do not have knowledge, resources, patience, or experience in trading but they are eager to trade and want to make huge money. They are the ones who are ultimately scammed by scammers.
What to do if scammed?
These scams and frauds aim to illegally obtain personal data and money from the traders. They typically include the use of regulatory authorities’ logos, letterheads, and pages from the site. Anybody asking for personal data should be looked upon with caution.
There are many scam brokers out there. If you have any doubt about the authenticity of the company, do read our reviews and scam reports on different scam companies.
Forex scam fund recovery is hard but not impossible. We guide victims of scams how the forex scam recovery is possible.
You have a great chance to uncover the scammers, not only locally but also worldwide. Check for latest scam news at our site. Scams can be of any type, binary options scam, cryptocurrency scam, pet scam, romance scam, investment scam, etc.
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