As more investors enter the market, investment scams are on the rise. As an international investment market with high leverage and high returns, the development speed and scale of the foreign exchange industry is far more than that of other financial industries, but this also brings opportunities for criminals. Now as long as the Internet casually search "foreign exchange scam" four words, you can see tens of thousands of fraud information. Like the capital plate, killing the pig plate and so on scam can not help but make people feel "this foreign exchange scam if the chives come, than what scam are shocking!" If you're not careful, you'll lose everything!"

Yes, it's terrible! Every day in the world, people are in or about to fall into the trap of forex fraud, so what should we do in the face of the temptation of investing high profits that we can't refuse? Tianyan Jun has always stressed that investors need to be vigilant at all times when facing temptation, learn more about common foreign exchange scams, and know the truth early to avoid "stepping on the thunder"!

Due to the fact that individuals are not allowed to conduct foreign exchange trading through online trading platforms in China, and Chinese enterprises or institutions are not allowed to engage in foreign exchange trading related businesses, the illegal elements target people's low awareness of the foreign exchange market and the idea of making money to carry out the scam. Common forex scams fall into the following categories:

Fake foreign exchange transaction

Some forex trading platforms are not content to make money just by charging fees. In other words, the trades made by investors are not invested in the real forex market, but in the hands of dealers, and the trades made by investors on the platform are completed in the trading platform's own operating system.

The data changes that investors see are also small actions that they make behind the scenes, and then they will let investors open positions in some ways to obtain the investor's principal.

Investment group live scam

At present, the development of the media is in full swing, fraud gangs will open live broadcasts through online groups, under the guise of master live analysis of the market can also carry out practical operations, and create a large number of trading screenshots and documentary profit proof, and there are various kinds of support within the group to create a money-making atmosphere, so that investors slowly fall with them to open an account to fill money. But it is a mystery whether investors' money has found its way into the real foreign exchange market. In general, many crooks are doing their own trading platforms, falsifying data, and investors simply cannot distinguish.

At the beginning, in order to gain trust, it can indeed make you profit, and when you top up more money, you may face two empty people's money at any time, and investors can't find each other later if they want to find each other!

Ponzi scheme

In fact, the pyramid scheme organization is robbing Peter to pay Paul, with the new investors' money to return to the old investors, once there is no new investors, the capital chain will be broken, fraud gangs will abscond with money at any time.

For example, long ago PTFX Puton is the use of this scam, borrow the new and old, pull the head of multi-level distribution. They will always put their packaging seamless, PTFX fake pruton, one of Indonesia's top ten securities companies, regulatory qualifications disguised is also very good, the vigilance is not high people will believe that it is a formal trading platform.

They attract investors through 10-30% high returns, and attract you to develop offline in the form of commissions, in fact, that is, to borrow new money to pay back the old money, once no new funds enter, their capital chain is broken, using the way to cover up the true image of can not out of gold, ordinary investors have what method?

Fund delivery platform

This is actually a long-term fishing operation, by giving a large amount of money to attract investors into the game. All the money earned by the bonus goes to the investor, which is very attractive! Although it appears that the forex price is consistent with the real forex market, all operations are still done in their system, and the loss of the bonus does not cause them an actual loss, their cost is only the money made by the investor on the bonus.

However, most investors generally do not rush to make money but increase the principal, and fraud gangs just want to increase the principal of investors, once the funds are in hand, they may abscond with money at any time, investors have no way!

Automatic trading system

Especially for some new traders, they may trust automated tracking systems, which may not be too expensive. In reality, however, these systems are just ordinary tools in the name of smart trading.

There is a lot of uncertainty in the forex market, so any tool or platform that promises to make a profit is problematic and can't actually work. In addition, there may be an excuse that the trading system problems caused the loss of trading positions.

Stealing personal trading information

Other scams are due to cybersecurity issues, such as phishing emails and hacking attacks. They use a number of link plug-ins to locate their own servers, once the investor clicks on the link, the login account password is likely to be stolen.

It can also be a way to solve the problem by creating a problem, such as pretending to be a dealer to remind you that your account is locked and you need to log in again to restore the unlock, so as to steal trading information.

Malicious slip-offs, order scams, over-selling products or unreliable payment methods. The spread of the general trading platform is 20-30 points, and some trading platforms will do malicious sliding points, although they do not make much money, but they will add up. However, the formal trading platform has no traders, will not give investors orders, some gambling platforms will have the so-called teacher guidance, but the gambling platform is competitive with you, their introduction is not credible.

Some trading platforms will over-sell trading tools mentioned above, and may also provide some uncommon payment methods, such as Bitcoin or Western Union, which can not get the money back, but also be cautious!

Investigate the essence of the foreign exchange scam

Although from the past cases, Tianye Jun has published many foreign exchange scams, but in the future there may be many different forms of scams continue to emerge, so how should we avoid it? In fact, these types of scams are very different, but the essence of their scams is to use domestic and foreign information asymmetry, novice investors are unfamiliar with the foreign exchange industry, human greed and our trust in acquaintances, in the name of foreign exchange trading to deceive investors.

Therefore, we need to understand the nature of forex fraud from the root and take corresponding preventive measures. Here are some tips to prevent scams:

1. In China, the foreign exchange market is not open, and citizens are not allowed to participate in online foreign exchange trading, so all online foreign exchange trading platforms in China are illegal. The key to investing in forex is to find reliable foreign traders!

2, the formal trading platform does not provide capital allocation, does not guarantee income, its trading platform profit mainly from the spread. Be wary of platforms that promise high returns, break-even, and guaranteed profits, because there is no such thing as a free lunch!

3, beware of foreign exchange pyramid schemes, once entered, difficult to exit! Even the recommendation of friends and relatives should not be trusted, money will make people lost.

4, if you are not sure whether the dealer is reliable, you can check several websites to verify. The foreign exchange regulator is the most secure trading platform, but the credibility of different foreign exchange regulators is also different, and it is also necessary to understand the reliable foreign exchange regulator. (For advice on how to choose a reliable trader, see the previous Tianyan article!)

5, try to spend some time to understand the foreign exchange market, but also improve their cognition, you can effectively avoid some of the information asymmetry caused by fraud. Don't take chances, always be alert!

6, do not click on unknown links, protect your account and password, can be replaced periodically.

Sum up

The emergence of many scams has led some criminals to destroy the entire foreign exchange investment ecology, damaging the interests of foreign exchange investors, regular foreign exchange dealers and foreign exchange markets. Although the forex market itself is a very large investment market, due to these scams and illegal operations in the country, many people are afraid to dabble in forex investment easily.

Of course, this fraud risk exists not only in the foreign exchange investment market, but in any investment market. Therefore, to be a good investor, learning and research, self-discipline, inner strength and intellectual decisiveness are essential.