The world of the internet is vast and there are practically a plethora of ways on how one can make money through it. While some work honestly for hard-earned money, some cheat, steal and take advantage of others to make money. Unfortunately, being a trader doesn’t exempt you from scams. Many scammers and fraudsters today are targeting traders for the reason that most money makers online are traders. Traders lose money on trading not only because they have lost trades – but it is also possible that scammers and fraudsters are working behind it. So, if you want to secure your hard-earned money in trading platforms like Pocket Option, here are some important things that you should know.
Online Scams Targeting Traders
Online scams in general are fraudulent schemes that deceive or mislead people into providing information about their financial details and sometimes giving their money voluntarily for nothing. There are several ways how cybercriminals go about scamming people over the net. It can either be through phishing emails, social media scams, SMS messages through your mobile number, fraudulent tech or customer support calls, and many others. These different kinds of scams are focused on a particular goal, and that is to exploit your finances. If you’re not careful, you may end up with missing funds on your account or even get your financial account wiped out.
As someone who deals with money, a trader is the most at risk when it comes to online frauds and scams. This is for the reason that pretty much all the resources which a trader uses and needs are found online. Among these resources that traders use regularly which scammers and fraudsters tweak to their advantage include trading-related news found on suspicious websites, trading tools and platforms, trading emails and SMS messages, social media posts regarding trading, and so much more. if you’re not too careful as a trader, you can be an easy target for these scammers
Scams Which Traders Should Be Wary Of
There are just so many kinds of deception that scammers use to steal money from traders that it becomes hard to tell a scam from the truth. However, if you have a good understanding of the different kinds of scams that fraudsters pull to lure unsuspecting traders, you’ll be able to avoid financial disasters. Here are the most common scams used by traders and how to avoid them.
Social Media Scams
Social media platforms have made it possible for like-minded people to come together to share and talk about their interests and all other ventures. Unfortunately, it is also a place where most scammers and fraudsters do their dirty deeds.
Scammers on social media websites such as Facebook, Twitter, YouTube, and other sites create groups or pages related to trading. As a trader who seeks relevant information, the trader joins and gains access to these trading groups and pages created by the scammer on social media websites – not knowing that it is created for the sole purpose of scamming people.
The social media group or the page will have regular posts about winning trades and strategies which can help a trader win trades on certain trading platforms. These posts are made more convincing through the proof of winnings and withdrawals which are actually edited and even taken from other traders’ accounts. As soon as the trader believes what he sees on the posts, he or she then tries to sign up or subscribe to whatever is being sold by the scammer. After signing up or paying for a membership, the trader is then blocked or kicked out from the group or page, or the scammer deactivates the page or group.
How to Avoid Social Media Scams
The first thing that you should do to avoid social media scams is to perform diligent research about the specific page, group, claim, program, product, or service. Ask around from other traders who are a member of the page or group. It would also be great to check reviews and personally chat or speak with some of the members. In addition, be informed of the people managing the page or the group and check their authenticity.
Another way to avoid social media scams is to check for actual or real proof of authenticity. If possible, meet up with the owner or administrator of the group and have them explain and show to you personally what the product or service is all about. If possible, ask for a free demonstration of what you’re going to subscribe to or pay for. Social media scammers and scammers, in general, are usually not willing to meet up in person or even show themselves on cam – if your potential seller does this, he or she is also a potential scammer.
Affiliation to the Trading Platform
The next kind of scam which traders should be wary of is when a person says that they’re affiliated with a particular trading platform such as Pocket Option – when they’re not. The worst thing that could happen with this kind of scam is that the affiliate will try to call, email or message you regarding an offer on the trading platform. The messages and spiels go along the lines of ‘We are currently offering a 50% money back for deposits of $1000 and above, or ‘You get a double-up bonus for a minimum deposit of $1000 within the next 2 hours, and so on.
As a trader, these deceiving offers are quite tempting. Many traders usually find themselves falling into these kinds of traps before they knew it and end up getting ripped off in the end.
How to Avoid Affiliation to Trading Platform Scams
Probably the best way to avoid such scams is to trace where the source of the message, call, or email is coming from. If it’s a call or SMS, the number should be registered on the particular trading platform with which the caller is affiliated. If it’s an email, make sure that the email is coming from an email that is registered to the platform. A good way to verify the authenticity of the numbers or emails is to directly chat, call, or email the trading platform customer support.
Trading platform impersonators
Another kind of scam that fraudsters use to deceive traders is by using trading platform impersonations. Many scammers are quite knowledgeable and skilled in recreating or copying websites to exact copy. They can copy all the features and functions of a particular trading platform or page down to its smallest details that it is very hard to tell that it is fake by just looking at it.
The unsuspecting trader then tries to log in to the fake platform by entering his or her log-in details. Once the details have been logged in, the fake website creates a copy or sends the details to the scammer’s database. After which, the scammer uses the account details to log in to the trader’s account and takes all the money available in it. The worst thing that can could happen after this is when the trader complains or sues the platform for stealing his or her money – when in fact, it was a different website that took the money.
How to Avoid Trading Platform Impersonators
To avoid trading platform impersonators, you will have to be aware of how authentic and secure platforms work and even look.
First, carefully review the link. Fake trading platforms can copy all that can be seen from a real trading platform but cannot fake the link. Each link is created and registered with a specific URL and domain extensions. An example of this is the Pocket Option trading platform whose real URL and domain extension is www.pocketoption.com, and not www.pocketoption.in, or www.pocketoption.gov, and so on.
Also, the fix to the problem is the same as how to deal with social media scams. Check for reviews, proofs, and even comments from other users or members before logging in with your details.
Trading Bot Malware and Scams
One more kind of trading scam this is becoming quite a problem to many traders these days is the trading bot malware and scams related to it.
Trading bots claim that traders can win trades without having to get involved themselves. Trading bots also claim that it makes use of the best strategies, psychologies, and tactics available to win traders. Furthermore, the use of bots is claimed to be more efficient because it doesn’t use emotions when making trading decisions. As we all know a common reason for the loss in trading is when a trader incorporates his or her emotions when making trading decisions. All these claims make the use of trading bots more convincing for many traders. While some may be legit, some are not.
One thing that you need to understand about trading bots is that it is created and designed to bring profits not only from trading but also from subscriptions. The scam comes in when the bot is unable to win trades because the trading platform does not allow automated trading, or the trading bot is unequipped with the most recent updates for trading on the platform, the bot comes with a virus or malware that steals your login information and other details, and worst is to be ripped-off right from signing up for the bot.
How to Avoid Trading Bot Malware and Scams
When it comes to products and services being offered online, it is always best to do your diligent research about its authenticity. Ask around for reviews, comments from previous users or clients, videos, and even testimonies from users. It is also a good option to test the service using fake or different details related to your account. This way you’ll be able to avoid getting your details stolen by scammers.
It is also a good option to always consider antivirus protection on your computer or device to avoid malware or dangerous software and files – as they say, ‘prevention is better than cure.’
Our final thoughts
Now, these are only some of the most common ways how scammers and fraudsters steal from traders. With the advancement of technology, scammers are becoming more creative and skillful in doing their dirty deeds. The best way to prevent them is by equipping yourself with relevant information on what they do.
With the relevant information mentioned in this article, you’ll be able to equip yourself with a good defense against scammers and fraudsters and secure your finances. If you want to further secure your finances not only from scammers but also from trading mistakes, do check out some of our helpful articles about this topic.
If you know of other scams which fraudsters use to deceive traders, do share and let us know through the comment box below – we always love to hear your thoughts!
Stay safe and good luck trading!
Risk Warning: The trading products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. You should never trade money that you cannot afford to lose.