Simply speaking, when some industry is overpacked with companies, it’s hard to follow them all. High chance that some of them will take advantage of clients and operate illegally. During the Covid-19 pandemic, the number of new Forex trading companies rose by 14%. Regulators couldn’t follow through much with all the issues, working from home, closing everything, so these companies decided to use it. If you’re wondering how to avoid the scam, keep on reading. We have an exact answer for Global Fraud Protection.
Why Are There So Many Forex and Crypto Scams?
Besides a rise in the number of Forex companies, we have a rise in the percentage of Forex scams as well. According to research, the number of Forex and crypto scams increased by 40% in 2020, and it’s expected to be even worse in 2021. As mentioned, scammers used the pandemic as an excellent opportunity to defraud clients away from regulators’ sight.
There are numerous reasons for crypto and Forex scams. For a start, cryptocurrencies themselves are not a regulated field. Therefore, many companies are using this to create hype about fake coins that don’t exist and promote them as the future of the digital market.
Also, it’s a relatively new product that is evolving every day. Fraudsters are using the lack of knowledge of their clients to sell them stories and convince them cryptos are something they are not – a magic tool for getting rich overnight.
And once again, we’re back to Covid-19 and people who are desperately looking for a secondary source of income. Or even primary. This is a common factor for both Forex and crypto scams to occur. Everyone knows someone who is trading and making a profit. Yet, to be successful, besides technical knowledge, you need to choose a legit company that will allow you to take your money back once the time comes. And fraudsters have no intentions of doing such a thing.
How Can I Stay Safe from Online Scams?
There are several ways you can protect yourself from online scams. As we’re sure you’ve read a million times up to now, always check the regulation. Even if the company claims to be regulated and provides some license number on their web page, make sure to check it directly with the regulator. That’s the safest way to know you’re dealing with good company. Besides, avoid offshore brokers since most of them are notorious frauds, and that’s why they are based offshore at all.
If the broker is offering cryptocurrencies, pay special attention to check their background. Verify if the company has SSL security (padlock next to the URL) and safe payment options.
Never provide your banking or wallet information to anyone. If you cannot make a payment from your side using your bank card, there is probably a good reason to avoid the broker.
In the end, you can consult experts. Companies such as Global Fraud Protection publish reviews and investors’ experience with a vast number of companies. This can be extremely helpful in deciding whether to start with a broker or not.
About Global Fraud Protection – Why We Write About Scam Brokers?
As mentioned, Global Fraud Protection is one of the experts for unveiling a scam. Their employees are dedicatedly working on uncovering all of the fraud types and scam companies, so none of the investors would fall for it. Besides, they are publishing regulatory warnings and follow news from the trading world. If you have already been scammed, their professional team will assist you with the matter, help you file a dispute, and request a chargeback.
You must be wondering why someone would do such a thing?
As scams are widespread, so is the help. This company chose to protect investors and help them get what belongs to them.
If you’re still not convinced, you can book a free consultation and check it out yourself.