Trading Platform Scams
With a rising number of online trading companies, we have also increased the number of
online trading scams. Unfortunately, owners of trading platforms nowadays don’t choose
tools to conduct fraud.
Ever since the Covid-19 pandemic started, many so-called mushroom companies popped up in offshore countries without regulations. Reportedly, there were 22% more scam victims since the pandemic began than there were before. Why? Because fraudsters used people’s desperation and involved them in their scheme.
Each online trading platform should have proper regulation in the country of service. And that’s just a first step towards making it legal. Besides, this regulation should come from a Tier1 regulator such as FCA, ASIC, or BaFin, since these regulators are making companies form a proper compensation fund. This fund is meant to be used for reimbursing victims, which is your money guarantee. Moreover, these companies are following MiFID and ESMA rules and keeping your funds in segregated accounts. That being said, online trading frauds became widespread. If you’re one of the victims, you shouldn’t get desperate. These fraudsters became sophisticated, using intelligently designed ads, making a proper pitch, telling you everything you want to hear. They also became more technically advanced, as they will access your computer or mobile phone via AnyDesk or a similar app and get to your online banking or a crypto wallet.
Don’t let this discourage you. Even if you fell a victim, there’s still plenty to do. You can file a dispute and request a chargeback. To do so, it would be best to have assistance from specialists who will guide you on everything and stay with you until the proper dispute resolution.