Whether you are a newcomer to the world of Forex trading or you have been involved with Forex for a while, it is important that you are aware of the dangers of Forex scam sites. These scams can lead you to lose all of your money. It is also important to know what to look for when researching a Forex scam.
TIRN
TIRN was a forex scam website that preyed on the unsuspecting with its high-yield promise of 9% to 22%. One of the bogus operators stole a reported $15 million. The TIRN forex scam website is no longer in business, but it is possible to evade the thugs who would have nabbed your cash. So, it is important to do your due diligence before signing up for a forex account. The good news is that if you do your homework, you will probably be successful in the long run.
TIRN is not the only forex scam site out there, so you have to be careful. This is especially true if you are looking to make a full time living from forex trading. The best way to protect yourself is to make sure you find a legitimate forex broker.
CryptoClubFX
Besides the fact that the platform hasn’t been online for more than a couple of days, I haven’t seen any legitimately convincing claims about it. Besides, the name is not one that can be easily attributed to a legitimate business. It’s a bit like a snake in a china cabinet. It’s best to avoid this situation at all costs. Aside from the aforementioned drawbacks, CryptoClubFX is not the kind of company I would like to be doing business with. After all, I wouldn’t want to deal with a crook in my own backyard.
The best way to avoid such pitfalls is to be well informed about the types of investments and entrust your hard earned money to a reputable firm. A good guideline is to stick with brokers who are domiciled in the U.S.
Chargebacking
Having a good knowledge of chargebacking on Forex scam sites is vital to your business. It is also important to understand what to do if you experience a chargeback.
A chargeback is a process that lets consumers get back money that they are owed for an unsatisfactory purchase. Depending on the amount owed, the process can take as little as 45 days to as long as six months. The process is handled by the credit card company. The process is governed by the Fair Credit Billing Act of 1974.
When a customer wants to get back the money they are owed, they can do so by asking their card issuing bank to initiate a chargeback. The card processing network will then transfer the transaction data to the acquirer.
Third-party asset recovery organizations
TIRN, a third party asset recovery organization, was the gimmick of the century, but did it deliver on its promise of high yield returns of 9 to 22 percent. In this particular case, the company’s operators misappropriated $15 million of your money. Fortunately, the TIRN was snuffed out before it could become a global money pit.
The CFTC has received a plethora of complaints about fraudulent ventures, from foreign entities to social media sites. While the CFTC does not have an official Forex scam site, it does recommend people avoid offers to trade precious metals, foreign currency, or digital assets. Likewise, the CFTC does not endorse any particular trader. It does recommend people do their homework before signing on the dotted line.
Targeting inexperienced traders
Hundreds of fraud complaints have been filed in recent months with the CFTC. Scam projects are often attributed to the crypto market and increase during times of bullishness. Some scam projects are also promoted via social media channels. Often times, the scam involves images of luxury items and celebrity endorsements.
Many scam sites targeting inexperienced traders promise unrealistic returns in a short period of time. This is often done through the use of fake celebrity endorsements or professional-looking websites. They also use high-leverage positions and the lure of low-risk day-trading to attract new investors. They may also use trading bots or sophisticated trading software. The only way to truly protect yourself is to conduct thorough research before signing up for any investment opportunity. You also need to be critical in your approach, make your own functions, and analyse statistics. You should also never give your personal information to a stranger.