Many try to maintain their faith in humanity, which can be difficult. Even for those of us who seek the best in people, we must be aware that dishonest and deceptive individuals walk around this world. We can protect ourselves against their plans to take our money away.

We know these people are there because Interpol broke into a Southeast Asian location in 2023, arresting 3,500 people involved in Internet cybercrime and seizing $300 million in stolen funds.

This part of the globe is known for favoring financial projects, of which the above case is just a drop in the ocean. Recently, one of the most common forms of attack is contacting victims through social networks like Telegram and including them in online groups offering financial advice directly from the mouths of “professionals”.

Once integrated into these groups, victims are informed of financial secrets allowing them to discover great riches. Simply quickly deposit money, whether fiat or crypto, to a designated address.

Cyberattacks

Another form of harmful attack involves dating apps, where victims are led to believe that a stranger has developed romantic interest in them. Finally, they are encouraged to sign approval for their love interest to take control of their funds, who they will never see again.

Alternatively, you may find yourself opening a URL with a very plausible name and appearing like a real trading platform. Believing that you are trading on the markets, you can deposit your money on the platform, without knowing that your funds are going directly into the pockets of thieves. Overall, we know $4.6 billion stolen through business scams in the United States in 2023, making this scam “once again the most expensive type of crime tracked” by the FBI that year, in its own country. words.

The right broker

On the other hand, many legitimate trading sites offer a genuinely good app experience to their customers. These are the ease of use of the interface, graphics technology and educational offerings. Indeed, the advent of online trading platforms has opened the doors of financial markets to tens of thousands of people who previously had no right to participate.

This was when financial trading was reserved for professionals working for large institutions. Now equipped with the power to open and close trades, monitor asset prices, and analyze price trends, retail traders are beginning to make their own mark on the markets.

The first step for those who wish to participate in the financial markets is to weed out and discard the bad seeds. In this article, we will focus on three red flags that will help you distinguish the bad from the good on online trading platforms.

FOMO

Announcing a “once-in-a-lifetime” opportunity to double your money can be very tempting, especially for someone in financial difficulty. It is common for scammers to use language implying that a single deposit will almost certainly result in outsized winnings. The only problem is that the deposit must be made immediately. Thus, the spread of FOMO (fear of missing out) is encouraged and the weaknesses of vulnerable individuals are shamelessly exploited.

FOMO doesn’t just affect people who are struggling financially. For many people, the appeal of such a project lies in its elegant solution to the cost problem of an upcoming wedding.

On top of that, no one likes to be left behind while everyone else seems to be living the high life. In addition to this, many psychologists spy symptoms of addictive behavior in overly motivated online traders. This is evident when they suffer from depression, anxiety, and social withdrawal due to the distress of their loved ones.

A finger can be pointed at the media, who devote endless hours to covering new cryptocurrency tokens with the potential to “shoot for the moon,” not to mention the flood of stories they peddle about early adopters of the cryptocurrency who have become fabulously rich. Until 80% ICOs (Initial Coin Offerings) are scams, and most crypto traders never join the ranks of the rich and famous.

The sheer volume of new information made available by the media gives the impression that the old financial rules have become obsolete, that the world works differently today, and that there is no longer a necessary connection between hard work and financial success. These suggestions find many sympathetic ears, especially among those who are less financially literate.

If the trading platform you’re considering uses language designed to instill FOMO in you, that’s red flag number one. Legitimate online brokerages will never force you to deposit funds within a specific time frame. Anyone who tries to put this kind of pressure on you should immediately become suspicious in your eyes. Financial decisions are easy enough because large sums of money are expected to be put on faith alone.

“No risk!”

“The potential for high returns on investments generally involves high risk,” writing the Commodity Futures Trading Commission. It follows that when you are bombarded by advertisements announcing astronomical gains with little or no risk, their reliability is seriously called into question. This principle is valid whether or not you know the advisor behind the program.

If you’re discussing finances in an online group you know well, a member may claim to be or know a highly qualified financial advisor with extensive knowledge of the markets. You are told that this person offers a unique opportunity to a select group of associates in which you can include yourself, and the returns are guaranteed to exceed any other. Another member of the group confirmed that she had taken advantage of the opportunity and could repay all her debts.

A little healthy skepticism is in order at this point. Everyone in this group may have worked together to trap you for several months, deliberately forming a friendship with you to gain your trust. “Ah!” you say, “But they sent me a video of several happy customers testifying that this scheme turned them into millionaires.”

In reality, all of them could be actors hired by fraudsters to lend credence to their stories. It can be hard to turn around and suspect those you think are your friends, but it’s the right thing to do. One way to respond might be to formulate a series of simple questions about the proposed agreement and present them to the group. If the answers seem vague or irrelevant, your suspicions should grow.

Usurpation

Make it a habit to closely examine email addresses and website URLs associated with financial platforms. You may feel like you’re on an established site, but discreet character can be added or removed. Cyber ​​thieves make it their mission to clone respected websites to make victims feel like they’re in safe territory, but one thing they can’t clone with precision is email addresses or Company URL.

Spoofing attacks are often used to set up phishing attacks, which occur when criminals impersonate legitimate entities by contacting you by phone, text, or email. You may even be called by the purported representative of an institution you subscribe to, and the person will claim to be conducting a routine check of your private information.

This is a wake-up call. Legitimate businesses generally don’t ask their customers for personal information over the phone, email, or chat. For one thing, they should already have it saved on their computer system. On the other hand, they know to avoid running their business this way because of the same security issues you are concerned about.

Conclusion

When selecting your online brokerage, the first thing to do is to check whether or not an official oversight body regulates it. Not all unregulated companies will necessarily scam you, but the chances of this happening increase when you deal with such entities.

Follow this by searching for some online reviews of the platform. However, they should be taken with a grain of salt, as even the best brokers have made their share of enemies in the form of unhappy customers. Most of the time, the fault lies with the clients and not the broker.

iFOREX Europe meets all expectations, with a loyal customer base throughout Europe. iFOREX Europe clients can trade CFDs on stocks, currency pairs, commodities, stock indices, ETFs and cryptocurrencies. Visit the iFOREX Europe website to find out more.

About iFOREX

iFOREX Europe is the trading name of iCFD Limited, which is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC) under License No. 143/11. The elements of this document were created in cooperation with iFOREX Europe.

They should not be construed, explicitly or implicitly, directly or indirectly, as investment advice, a recommendation or a suggestion of an investment strategy with respect to any financial instrument in any manner. CFDs are complex instruments with a high risk of losing money quickly due to leverage. 73.2% of retail investor accounts lose money when trading CFDs with this provider.

It would be helpful to consider whether you understand how CFDs work and whether you can afford to risk losing your money. Please note: Past performance movement calculations may represent the futures contracts and not the underlying asset. Full disclaimer: