In the world of forex trading, most cybercrimes come from fraudulent forex brokers that deliberately set up traps to scam their trading clients. The victims that were defrauded often face despair and helplessness because even with the help of the police, the chances of recovering their funds were little to none.
I. Fraudulent brokers provide fake information that is deliberately curated to delude the public. This includes their licenses held, regulatory statutes, years of establishment, awards received, and registered addresses. Some brokers even clone the names and website designs of a renowned forex broker to trick users to think that they are engaging with the established company. In the face of all this fake information, any clues and proofs obtained by the police are just vanities because they are untraceable.
II. Fraudulent brokers hire outsiders to do the dirty work for them. These people are often lurking in internet forums, public forex group chats, and social media platforms. Their common tactics are promoting a “get rich quick” scheme that lures the traders to deposit and trade alongside a so-called forex mentor or fund manager. Before they could join the “millionaire VIP group” to enjoy the trading signals or tutelages, they have to open a new account with the fraudulent broker in question and deposit a certain amount of money for that privilege. When the client wishes to withdraw his money, the broker would send a third-party customer service representative to contact the client personally and tell him to pay extra fees or taxes before his withdrawal. When the transaction is done, the customer service representative cuts off all communication and disappears – leaving the client in shock as his money vanished into thin air.
III. The group of people mentioned in point (ii) is likely to use fake identities to cheat. Realistically, that is what a fraudster would do. They disguise their identity and go around with fake names and fake ID photos to create a fake identity and personality with a phone number or email address that gets disposed of when they have finished their act.
IV. Malicious forex brokers use a fake IP address. A floating IP uses the network springboard to continuously mask the real IP. Then, they use fake IPs to carry out internet fraud. Thus, it is difficult for investigators to detect them. Even if they get caught, chances are that the police can only find a personal company without enough evidence of their criminal activities.
V. Funds get transferred in and out of a fake account. Many victims reported that they made the transaction of funds into a legitimate account, but why is it still difficult to track the main culprit who owns this account？ This is because these scammers usually operate in an organization with a designated team who uses fake phone numbers, identity documentation, as well as carrying out money laundering to make the funds untraceable.
These articles below are real-life examples that showcase the traits and tactics used by deceiving forex brokers mentioned above:
Read here: https://www.wikifx.com/en/newsdetail/202206169814297439.html
Continue Reading: https://www.wikifx.com/en/newsdetail/202206299254921380.html