How to Identify Misleading Online Trading Ads?

The option of online trading in Forex or cryptocurrencies appears lucrative where many buyers hope to get rich by trading currencies or stocks online; in contrast, online scammers seek opportunities in such registrations, typically whenever there is money changing hands. 

Experts believe higher security is required to handle digital frauds on online trading where the scammers make use of fast and efficient ways to breach security levels.

The users are often asked to open multiple accounts online where the website offers bonuses for each new registration that also involves moving funds from one to another between accounts. The sites offering free registration for cryptoand Forex transactions may give misleading information about earnings and profits. 

It is common to see the account takeover problem where one can uncover an account’s login credentials and change the payment details related to funds transfer from the bank account in your name. 

Cryptocurrency exchanges use complicated unreliable ways to conduct a transaction, which one cannot trace as it is made through blockchains. Still, such technology makes it difficult to get the source details. Also, the transactions registered through the sources can be more complicated and time-consuming than the conventional systems. 

The use of currencies like altcoins makes it difficult for the account holders to trace the transaction and proceed from one account to other. 

The use of cryptocurrency is often highly speculative, supporting criminals who can convert the profits into resalable goods or gift vouchers or prepaid cards. 

Fraudsters offering profitable deals on online platforms may promote it through fake celebrity endorsements and affiliation, where they depict luxury items to attract new buyers to their scams. The ads link the professional websites to sites that persuade buyers to invest in such options, and they may even offer to execute a trade on their behalf in return for deposits.

Some consumers receive a small percentage of profits on trades, which gives them the impression that the trading is highly valuable. It also encourages them to invest more money or give references about the site to friends and relatives. 

But after the initial investment, the earnings from those sites may end, and the customer account could be suspended without any further notification. Such frauds even claim FCA and other government agencies support them. 

How to Protect Yourself From Online Trading Scams?

• Never click links or adverts that assure to get huge returns on investment through online trading.

• Refuse offers where you are contacted out of the blue to invest through an online platform.

• Always conduct your research on a product before considering the investment.

• The FCA does not regulate all types of investments (including cryptoassets).

• Check the FCA warning list and use tools to examine the risks in fund transfer.

• Check the details related to the investment firms, the directors and products online.

If you suspect a scamreport it to the consumer helpline. Also, be aware of the follow-up scamthat can be a separate fraud where the representative of the same or another company may call to help you get your investment back for some initial fees.