Menace of Society
Corruption and corrupt practices such as online scammers, are unfortunately part of our society. Every one of us recognize them with different names such as fraud, scam, theft, robbery, usurp etc. and they go by with various other names. It is said that corruption is the menace of society which eats the foundation of a nation very slowly and one day the cradle falls to the ground.
Scam has become a usual thing
There was a time when it looked to us as a big news when we heard that a bank has been robbed or that somebody’s property has been snatched from him. However, from the beginning of this century, when mankind was able to develop powerful computers and successfully created world wide web where people can interact with each other irrespective of the distances, do online shopping, hold video conferencing while the participants can be from different parts of the world.
Internet and online trading
Another very benefitting use of the internet was its ability to allow traders to trade online but before the inception of internet they were only able to participate in the traditional trading markets. As a result they were making only a handful for themselves because the traditional trading markets were overwhelmed with the large and influential brokers who were working with the market for a very long time and don’t allow newcomers to excel in the field.
CFD – a lucrative business
Online trading has become a norm of today where traders from all walks of life and from all over the world are trading under the umbrella of global trading market from where they can do trading in foreign exchange, CFDs, indices, commodities, stocks, metals, shares, etc. One of the most popular trading product amongst these is the CFD trading. This trading is an absolute gem amongst other trading products which allows a trader to inject a considerably low investment and in return can enjoy the leverage of high potential of profit earning.
CFD trading scam and how it works
Another amazing feature of trading in CFD (contracts for difference) was that when a trader hires a reputable brokerage house to do his online trading, he used to get approximately 15% welcome bonus which may vary depending upon the brokers to brokers. The point is that everything was running smoothly and efficiently and in a sound manner. With the internet, great benefits were provided to the online brokerage houses who were able to make their living and, simultaneously, the online traders were able to find a new way of taking part in the trading. These people were successfully and without any fear pursuing their trading careers until this menace made its way in.
How CFD trading can be turned into scamming
There is no doubt that CFD trading has been a legitimate business but what these ill-intended devils do is that in most of the cases they create false websites pretending to be an online broker. The websites look quite real and has all the ingredients which any normal website or, in particular, a trading website has. Then there are imaginary trade opportunities which seem real and provide lucrative profits. The victim is then enticed upon to open up trading account with an initial deposit which may range from minimum to maximum averaging 500 US$ to 500,000 US$ in many cases. In this way they set up their traps and once you have signed up with them, the fate of your funds is totally up to them. There is a chance that your initial deposit may be confiscated illegally or that you are made to invest in an opportunity in which you will ultimately lose all your money.
Using of FCA as means to legitimize Scam
As part of their nefarious designs, they also use FCA, namely the Financial Conduct Authority based in UK, and entice the online community and traders that a certain website is fake and that FCA has started to take action against them. While it may be true that the website they are reporting are fake but one cannot ignore the fact that even the reporter too might be operating a fake website. The formula is so simple that the thief is pointing out to another thief and in return earns credibility for himself amongst the general public. This is in fact a dangerous tactic which can fool anyone no matter how smart he or she is.
What needs to be done?
With the enormous use of internet all over the world by adults and non-adults the news of somebody becoming a victim of fraud or scam has become a usual thing. It is not a big deal now. So far we are safe, we don’t bother what is going on with the other person. But this dilemma is so grave which has massive adverse effects and requires immediate attention and well-thought of solution. CFD is a legitimate business and due to these culprits, this legitimate business has become doubtful and has very negatively hurt online CFD business.
It is the dire need of the hour that if someone is being approached by persons who pretends to be authentic broker of CFD and offers such promises which do not seem practically possible, then you must start doubting his credibility. As a first step he should seek assistance from the family and friends to seek whether they could give any information about such broker. As a second step the person need to do a thorough enquiry online to find out his authenticity, which can easily be done while exploring certain websites which contain information regarding scammers and their ponzi schemes. One such website is money-back.com which, apart from providing information regarding the scammers, is also a great source of getting refund of the stolen amount if a person has been scammed.
Be alert at all times
Today scammers are busier than ever before and are able to devise new ways and means to scam innocent people. While the internet use for conducting online trading, and in particular CFD trading, has increased manifold, similarly, the numbers of scam artists has grown simultaneously. It is therefore imperative that we should know with whom we are dealing with and not allow anyone to jeopardize this lucrative and profitable CFD trading business.