How to judge a foreign exchange scam company?

How to identify foreign exchange fraud? How to judge a foreign exchange scam company? See through the true face of foreign exchange fraud and teach you how to avoid being deceived. How to identify fake and scammer foreign exchange companies! How to swindle money? How do foreign exchange companies generally deceive people?

Recently, the editor of 518 Foreign Exchange Network received complaints from netizens, which are roughly as follows:

How to cheat money? How do foreign exchange companies generally deceive people?

I have recently come into contact with foreign exchange and I have some questions that I would like to ask you.

First, the foreign exchange company requires me to transfer the money to the company account first, and then it will take about half an hour for the money to be credited to my account. Is this legal? What's the trick here?

Second, what agency regulates formal foreign exchange companies? On what website can I check it?

Third, what is the normal spread of a formal foreign exchange company?

Fourth, I often see people online saying that they have been defrauded by foreign exchange companies. How did they get defrauded?

What the editor wants to say is: If the foreign exchange company cannot find out the corresponding regulatory information, or if the supervision fails, the funds will face the test of security issues.

Some foreign exchange companies with the internal trading model are promoting the internal trading model under the banner of external trading, changing the soup without changing the medicine.

Some foreign exchange platforms are P2P themselves. They are not asset management companies and are said to guarantee capital and income. Whether such a platform is a foreign exchange platform is worthy of consideration.

Sometimes the foreign exchange industry is quiet for a while, which does not mean that no fraud is happening around us, maybe it just hasn’t broken out yet. The greed of investors causes them to become victims of fraud, and greed stimulates fraudsters to keep thinking. New tricks are being used to confuse investors, making it difficult for people to guard against. What new fraud tricks have appeared in the foreign exchange industry during this period? Let’s take a look.

News on October 10, 2017, in the foreign exchange trading industry, It's not enough to be "bold", you must also be "careful". When everyone sees news about scams, they immediately open it to see the excitement. However, once you are involved in a fraud case, this mentality of watching the excitement will immediately turn into anger or anger at others, as if your faults are caused by others.

Understanding what kind of scams are happening now from regulatory agencies and professional media such as FinanceWord is the "carefulness" that investors need very much. Regulatory agencies issue warnings about potential fraud every day, and we continue to report and provide anti-fraud tips. However, the most important thing is for investors to take precautions themselves.

Sometimes the industry is quiet for a while, but it does not mean that there is no fraud happening around us, maybe it just hasn’t broken out yet. The greed of investors causes them to become victims of fraud. Greed stimulates fraudsters to constantly come up with new tricks to confuse investors, making it difficult for people to guard against them. What new fraud tactics have emerged in the foreign exchange industry during this period? Let's take a look.

Top Company

The so-called "Top Company" is to clone the basic information, regulatory information, etc. of regular overseas retail foreign exchange companies in an attempt to "disguise the real thing" in the domestic foreign exchange market and confuse ordinary people. Investors have an investment relationship with them. However, in terms of the safety of customer funds, this kind of scam company has no guarantee at all.

In the domestic market, cloned retail foreign exchange brokers are often British or Australian companies. The main reason is that the British FCA/Australian ASIC adopt mixed industry supervision, that is, traditional banks, insurance, securities, funds and retail foreign exchange are all subject to unified supervision by the above-mentioned regulatory agencies, and there are many options. Many brokers in the UK or Australia that are advertised in China are often insurance, investment consulting or fund management companies in the country and do not have any retail foreign exchange business.

In addition, domestic investors are "superstitious" about the supervision of the British FCA and Australian ASIC, which just gives an opportunity to rip-off operators. Another embarrassing reason is that the official website of FCA or ASIC cannot be checked normally in China. Many ordinary investors do not know how to check through the wall or do not understand English, resulting in being deceived.

Virtual Currency and ICOs

Judging from the news about virtual currencies and initial coin offerings (ICOs) reported by FinanceWord Huizhong Information some time ago, it seems that this has attracted great attention around the world. It’s hot.

The value of virtual currencies has skyrocketed in recent years. In 2009, one Bitcoin was worth only US$0.06, but now, one Bitcoin can be exchanged for US$4,577

However, the disadvantages of virtual currencies are also obvious. Its value fluctuates greatly, and currently regulatory attitudes among countries vary, and there is no central exchange for virtual currencies. Each service provider also performs clearing functions.

And ICOs have created a new financing method in the virtual currency circle, with the amount of market financing exceeding US$2.3 billion in just a few months. Although everyone knows that ICOs are high-risk, many people still think that they are good investment opportunities and can make more money from them. For example, Jumbo Coin has been used to make money through fraud for many years, and even crosstalk actor Jiang Kun has been involved; there are also Onecoin, which is notorious and has been jointly attacked by global hackers, and Asia-European Coin, which has attracted more than 4 billion yuan in domestic revenue. These are typical virtual currency scams.

Since the People’s Bank of China and other seven ministries and commissions determined that ICOs were illegal public financing in early September, the United Kingdom, the United States, Singapore, Hong Kong, etc. have issued fraud warnings about ICOs.

The British Financial Conduct Authority (FCA) stated that ICOs carry high risks (including lack of supervision by regulatory agencies, lack of investor protection and price fluctuations, etc.) and are highly speculative investments, and stated that ICOs may be included in the regulatory scope. The U.S. Securities and Exchange Commission (SEC) has also frequently warned about the potential fraud risks of ICOs. However, spurred by high returns, virtual currency and ICOs scams still continue in many countries.

Illegal binary options brokers

After a lot of dark history has been continuously exposed in the binary options industry, it seems that it has been difficult to turn around. However, the battle between regulators and unscrupulous binary options brokers continues. There are still many problems left in this industry. At present, only a few countries, such as Japan and Malta, have included binary options in regulation. Compared with previous years, this industry is almost in its twilight years.

In China, although binary options are banned by regulatory agencies, many illegal binary options companies still use names such as "foreign exchange short-term trading" and "micro-cap trading" and continue to defraud the market. . What is even more exaggerated is that some binary options companies directly place computers in game console rooms or entertainment rooms for these gamers to place bets.

FinanceWord Huizhong recently reported that SpotOption, a well-known binary options technology provider, and other brokers operate in secret to increase the probability of customers losing money. However, in Israel, the home of binary options, due to political reasons, the national ban has become ineffective, important content has been deleted, and the effect of the ban has been greatly reduced.

Other asset fraud may penetrate into the foreign exchange industry

Ponzi schemes such as financial pyramid schemes and money games often use the banners of foreign exchange transactions, foreign exchange documentary financial management, etc., to the foreign exchange field. Investors are being deceived, such as IGOFX, which ran away with 30 billion yuan, PTFX, which is committing fraud, and Volker Forex, which is unable to withdraw funds. These are financial pyramid schemes that infiltrate the foreign exchange industry under the guise of foreign exchange transactions.

Overseas, in early September, the U.S. Commodity Futures Trading Commission (CFTC) announced "one of the largest precious metals fraud cases in CFTC history." Monex Precious Metals and several of its executives were accused of defrauding retail customers of hundreds of millions. US dollars of investment funds and conducted thousands of illegal over-the-counter leveraged commodity trades.

The CFTC stated that between July 2011 and March 2017, investors’ leveraged trading in Monex Precious Metals resulted in losses of more than $290 million. The company adopted the tactics of an unscrupulous Forex or binary options company, using high-pressure sales techniques to attract customers and being able to skip high share contributions from trades.

Conclusion

In order to protect investors, regulatory agencies further regulate various forms of fraud, including digital currency ICO, binary options and precious metals leveraged account trading. It is difficult for ordinary traders to see through the quality of an investment project at a glance, but there is an old saying that must be remembered - if it looks too good, there is probably something wrong with it. Financial trading instruments carry high risks, but the characteristic of fraudsters is to overpromote high returns and rarely mention the risks.

Therefore, when faced with exciting investment opportunities, you must think twice before leaping!

(Editor of this article: 518 Foreign Exchange Network ()--100,000 foreign exchange friends learn online, and download massive foreign exchange books, software, and EA for free.)

How to identify foreign exchange fraud? How to judge a foreign exchange scam company? See through the true face of foreign exchange fraud and teach you how to avoid being deceived. How to identify fake and scammer foreign exchange companies! How to defraud people? How do foreign exchange companies generally deceive people?