Matthew Chandler 13 / June / 19

What schemes do scammers come up with?

Top schemes how a fraudster on the market can deceive you

Fraudulent schemes associated with the Forex market are carried out online. Fraudsters, under the pretext of carrying out broker-dealer activities, lure money out of citizens - users of the site, where transactions in the foreign exchange market are carried out. Fraudsters create the image of a successful and promising company by interacting with the user of the site through fake city numbers, e-mail, and sending letters on behalf of international banking brands to make them more convincing. In some cases, fraudsters send fake business plans with investment offers to weaken their attention and confirm their activities. After the user voluntarily sends a certain amount, pseudo-brokers inform them that the money is “stuck in the bank” for various reasons and a certain percentage must be paid to withdraw it. Using various methods of psychological influence, fraudsters lure additional funds from the site user. This mechanism scrolls until the user begins to doubt the legitimate activities of the company and check their legitimacy. But in this case, fraudsters, posing as employees of different security services, increase psychological pressure on the user and ask for additional fees. Given the user's desire to return their investment, this scheme can be implemented many times.The mechanism and development of this scheme is based on the trust of investors and the provision of powerful psychological pressure on them: calls are constantly received from unregistered numbers, emails and fake business investment plans are sent. Very often, scammers give the client the "right" to trade foreign currency on the Forex market, which is called over leverage, that is, on debt. Such transactions carry significant risks of investment losses with high volatility of currency pairs. In this case, the client is provided with an agreement drawn up in accordance with foreign legislation, which subsequently complicates the resolution of disputes and conflicts, as well as the restoration of violated investor rights.

How do scammers work? 

Pseudo brokers, of course, do not provide the client with access to real foreign exchange trading in the OTC Forex market. Fraudsters provide the client with allegedly remote "access" to transactions with foreign currency and other financial instruments through various Internet services and trading platforms. Often, such organizations are registered in offshore zones and work remotely on the territory of Kazakhstan, or through representative offices, branches that offer clients advice and conduct training on investing through their services. In addition, there are individual companies operating in the Kazakhstan market that raise funds from third parties by providing trust management services. These companies subsequently invest in financial instruments and other property objects. However, they may not have an appropriate license. These organizations conduct an aggressive advertising campaign, “play” on the credulity of citizens and their desire to receive income, mislead them, promising consistently high profitability, several times higher than the current interest rates on bank deposits. At the same time, they do not disclose information about possible risks. When a client tries to withdraw "earned" income, these companies evade returning the client's money, or for some reason unreasonably "zero" the client's accounts, which also carries signs of fraudulent actions on the part of such companies.

How to distinguish a real intermediary from a fraudster? 

It is easy to make sure that the broker is real and not a fraud: check if he has a license to carry out professional activities in the securities market. All details of the broker indicated on the financial regulator's Internet resource must match the details specified in the license. What rules should an investor follow? It is necessary to understand that by investing their funds in the stock market or the Forex market, the investor is not insured against market risks and as a result of investments can both receive income and incur losses. It is important for an investor to remember that trading in foreign currency and other financial instruments is associated with various market, credit, currency risks, etc. Therefore, any investment requires a thorough analysis of the market, financial condition of issuers, security parameters and making an informed decision regarding it. In this connection, a novice investor cannot make investments with borrowed funds, as well as with funds that may be required in the short term.

What rules should an investor follow? 

It should be understood that investing in the stock market or the Forex market, the investor is not insured against market risks and as a result of investments can both receive income and incur losses. It is important for an investor to remember that trading in foreign currency and other financial instruments is associated with various market, credit, currency risks, etc., therefore, any investment requires a thorough analysis of the market, financial condition of issuers, security parameters and making an informed decision regarding it. In this connection, a novice investor cannot make investments with borrowed funds, as well as with funds that may be required in the short term.




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Matthew Chandler
Matthew Chandler
Matthew Chandler 33 years old Born in Edinburgh. Married with one child. Graduate University of Cambridge, Psychology course 2011. Works at Acclaim Studios London.

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