It has been found in studies that almost all forex fraud victims are those investors who attempted to use good profits making ideas which yield quick results and did not do proper market study before investing funds. Thus it is important for investors to know the methods utilized by investment swindlers for drawing attention and to compel people onto making the investment. In this article we will go through information with regards to investment swindlers & how you can protect yourself from these forex frauds.
Recognizing Investment Swindlers
These people often buy mailing list that has information about people subscribing to various publications on financial investments, people who are known to reply to offers which are of direct mailing nature or track people they assume have all the features they look out for. To begin their scam they do not start with any direct sales pitch about investment in forex market but instead tell such person to contact them so that there is no suspicion.
Use of Different Mediums
Forex scammers use various mediums like internet, referrals & similar methods to contact people.
1. Internet is now the most well known medium that everyone uses for purchasing things & forex scammers have also started using it.
2. Referrals are developed when initial investors get rewarded with large profits in a short period of time and scammers make such payments out of the money they have or funds available from investment made by others. They anticipate that those getting good profits will recommend their name to others thus helping them to increase the volume of scam they are able to do.
3. There are swindlers who purchase or rent high end office space from profits made in previous scams so that new investors get the feeling that it is a big & reputed company. Once they get a person to invest, such person is then made to believe that profits accumulating on the account are being reinvested so that the investor earns even larger profit.
Methods Applied for Forex Fraud
A fraud company or person takes help of different methods to convince you that proposed investment is the best. The main points they try to highlight are possibility of large profits & least amount of risk to be born. Another commonly used technique is to make everything look very urgent and that there is no time. They would tell you that this offer is on first come first serve basis and limited seats are left or if more delay occurs then the amount of profit you can make will get reduced. The main idea behind bringing urgency into this whole exercise is to reduce checks on what they are doing and to reduce time that you have to inquire about them from any forex trading regulatory body.
What things to inquire?
You need to inquire several things if suspicion arises that any offer is forex fraud, some of these points to ask are:
1. Where they found your name?
2. Are there any risks?
3. Can they talk with investment advisor you have?
4. Can they provide references?
A Final Note
Thus it is clear that fraud is common in forex trade & remaining aware of how things functions can help you save your investment from falling in wrong hands.