Cryptocurrency trading scams are among the fastest growing forms of fraudulent activity online. They operate through impersonators pretending to be popular celebrities and recommending that their followers trade in cryptocurrencies. These fake celebrities might even offer to double your investment or match your donation to a fake charity. However, they’re only pretending to be celebrities, and you’ll only be losing money if you believe them. Bitcoin is a popular form of cryptocurrency, and many people are using it to trade in the currency market.
The CFTC has received hundreds of complaints over the past few months regarding this type of fraudulent activity. These scams generally target those who have just recently been laid off or are working from home. They are often promoted by individuals in discussion groups and include links to a messaging app. Once the victim signs up, they may be enticed to make a deposit of several thousand dollars.
There are several signs of a scam. Scammers will contact you via a variety of methods, including cold calling. They’ll always insist on payment in advance and will often talk about the high qualifications of their managers. Their only proof that they are profitable is in the form of excel tables. It is a good idea to remain skeptical and educated about all aspects of a bitcoin forex trading scheme before signing up.
Brokers should be licensed and regulated by a regulator. However, many bitcoin forex trading scams operate without a license. Regulators provide oversight and can take disciplinary action against brokers who fail to comply with their license requirements. It is also advisable to avoid brokers with fake licenses. Also, avoid brokers who promise you a return within a short time.
Fraudulent brokers also use names and registration numbers of authorised forex brokers. This makes it difficult to verify the identities of people who make investments using them. While cryptocurrency itself is not fraudulent, its popularity attracts fraudulent individuals to operate in the industry. Since bitcoin doesn’t have names attached to transactions, they are difficult to trace. A good broker will be able to provide you with information that matches the company.
The scams that target investors are many. The most common type of scam involves a group of people or a website that promotes a particular cryptocurrency. These scammers use false marketing tactics to attract new investors. These scammers make people buy their coins at inflated prices, and then sell them at a loss. Many users never see their funds again, and the scammers end up making a tidy profit by scamming people’s hard-earned money.
The best way to protect yourself from such scams is to do your own research. While some people may be tempted to use forex robots to make profits, it’s better to do your own research and check whether the robot is legit. In many cases, scammers disguise themselves as a reputable Forex broker or investment platform.