03 Sep Techniques Forex Scammers Employ To Trick Investors
Forex is the most active trading market around the world with participants from MNC to large banks to speculators to governments to individual traders. Investor can experience a huge loss because of the constant fluctuation in currency prices. Besides, an investor also needs to consider other trading risks like Forex scam.
How scammers mind works?
Therefore, it is crucial for each investor to be aware about the Forex scams, which are designed to swindle them. Internet access has dramatically increased the way people conduct business online. However, crooked minded people have also identified the potential of Internet. Scams, which were processed by phone or mail are now gone online. New technologies are also used to rip off customers.
Scammers are also aware that the regulators monitor advertisement regarding unusual profitable investment opportunities, so they use their old techniques that involve paying huge profits to investors who got registered first. The scammers are certain that these investors will talk to their friends and these in turn will talk to their friend. Very soon, the scammer does not need to look for new victims because they will come in search of his reputable business.
Some scammers rent plush offices with mind blowing interiors and hire professional receptionist. They open up as reputable investment firm. You may need to schedule an appointment and even be kept waiting in their office. Impersonating success depends on scammer’s skills to keep consumers from identifying the fact that they are being swindled. Investors get an assurance that their huge profits are reinvested to gain more and more profits. Impersonating scammers even join community groups or contribute to charities.
Techniques used by Forex trading scammer
Techniques differ but one thing is common and that is their competence to be convincing. They need to be good salesman but a well-known advantage is that they can promise anything without any reluctance, so as to encourage investors to deposit their money.
Some common techniques –
- Make profit proposal that are believable but suggest that potential profit can be greater.
- For making his pitch credible, he acknowledges some risk but quickly assures it is minimal with respect to profits you can certainly make.
- In case, you raise the risk question he may turn aggressive suggesting why he wasted time on people, who lack foresight and courage necessary to earn good profits. [He does this, so you don’t bring this subject again]
- Usually the scammer will give compelling reasons to invest immediately as the opportunity is for limited people or delay can mean missing on large profits. Urgency is crucial to scammer because he does not wish to give you time for thinking or discussing with someone or check him with regulatory agency.
- They talks so confidently and seem like they are offering you best investment opportunity. They talk more so you don’t get an opportunity to ask questions.
How to turn off Forex scammer?
Some questions Forex scammer will not like to hear?
- Who gave you my name?
- What are the risks involved in proposed investment?
- Send me written explanation about your investment scheme, so I can look at it conveniently?
- Will you explain this investment proposal to my investment advisor, attorney or accountant?
- Can you offer references?
- What regulatory sources is your firm affiliated with?
- How long are you in this business?
- What’s your track record?
- If dispute arises, how to resolve?
Best advice is to investigate, before investing!