What are the tricks of foreign exchange fraud in the industry?
When it comes to fraud in the foreign exchange industry, the first thing we should think about is the platform "running away". Many investors are suffering from it. In the foreign exchange trading industry, courage is not enough. You must be careful. The main reason why fraudsters can successfully confuse investors is because of investors' greed, and the fraudsters' deception is endless, which makes investors unable to defend themselves.
According to the industry, the so-called online foreign exchange trading platform is also known as foreign exchange margin trading. As early as the early 1990s, there was an upsurge of foreign exchange margin trading in Guangzhou, Shenzhen, Beijing and other places. However, due to the lack of supervision and the lack of understanding of the business, many individuals and organizations have suffered huge losses. Subsequently, the business was deemed illegal by regulators and the transaction was not protected by law. At present, there are mainly two kinds of active foreign exchange trading platforms on the Internet: one is directly connected to the international foreign exchange trading market, the other is an overseas broker trading platform approved by the foreign exchange administration; the other is to use regular overseas brokers as a gimmick and take direct participation in international market transactions as bait to defraud investors' funds through pyramid selling or fund-raising, promising 20 high returns.
Foreign exchange margin trading is a financial business, which shall be approved by the financial supervision department according to law. However, at present, there are no laws and regulations explicitly allowing such transactions, that is, similar platforms have not been legalized in China. The main participants of the first type of foreign exchange trading platforms, including domestic agents, propaganda institutions and investors, need to bear corresponding legal responsibilities.
The second type is essentially online financial fraud. Criminals use the speculative psychology of a few people who dream of getting rich overnight to attract investors with high returns from online trading speculation. They also use people to attract people, level by layer rebate, develop offline business and expand scale. After making a lot of money, they ran away with the money. Investors should understand the essence of the operation of this platform and avoid fraud.
What are the common fraud tactics in foreign exchange industry
1. The so-called counterfeiting company is to clone the basic information and regulatory information of overseas regular retail foreign exchange companies in an attempt to deceive ordinary investors to establish investment relations with them in the domestic foreign exchange market. However, the security of customer funds is not guaranteed. In the domestic market, foreign exchange retail brokers who encounter clones are often British or Australian companies. The main reason is that the United Kingdom's Australian FCA / ASIC implements mixed supervision, that is, traditional banks, insurance, securities, funds and retail foreign exchange are subject to the unified supervision of the above regulatory agencies, which has great selectivity. In many domestic promotional activities, brokers in the UK or Australia are often domestic insurance, investment consulting or fund management companies, and have no retail foreign exchange business. In addition, domestic investors are superstitious about FCA regulation in UK and ASIC regulation in Australia, which gives deck operators an opportunity. Another embarrassing reason is that many ordinary investors are unable to cross the wall to query or understand English, which leads to being cheated, because the domestic websites of FCA or ASIC cannot query normally.
2. After exposing a lot of dark history of illegal binary option brokers, the industry of Binary Options seems unable to turn over. However, the fight between the dual brokers and the illegal brokers continues. There are still many problems in this industry. At present, only a few countries, including Japan and Maltese, put Binary Options under supervision. Compared with previous years, the industry has entered a trough. In China, although binary options are prohibited by regulators, many illegal binary option companies still cheat in the market under the guise of short-term foreign exchange transactions and small transactions. What's more, some binary option companies put their computers directly in the game room or entertainment room and let these players bet.
3. Virtual currency and ICOS virtual currency and ICOS have become the focus of attention in the world. The value of virtual money has risen rapidly in recent years. In 2009, a bitcoin was worth only $0.06, but today, a bitcoin can be converted into $5663. However, the disadvantages of virtual currency are also obvious. Its value fluctuates greatly. At present, different countries have different regulatory attitudes towards virtual currency, and there is no unified exchange rate system. Each service provider performs the clearing function at the same time. Although we all know that ICOS is very risky, many people still think that it is a good investment opportunity to make more money from it. For example, cross talk actor Jiang Kun has also been involved in precious coins that have been used for years to cheat and encircle money. There are also the infamous world-famous viguna one yuan coin and domestic Eurasian currency, attracting more than 4 billion yuan. These are typical virtual currency scams.
4. Other asset fraud projects such as financial pyramid and currency game often deceive investors in foreign exchange field under the banner of foreign exchange trading and foreign exchange documentary financing. For example, 30 billion yuan of igofx, ptfx, cheating Volcker foreign exchange, etc. All of them are financial pyramid plans that infiltrate the foreign exchange industry under the guise of foreign exchange trading. It's hard for ordinary investors to see through the quality of an investment project at a glance, but there's an old saying that must be remembered - if it looks too good, there may be problems. The risk of financial transaction instruments is very high, but the characteristics of fraudsters must be excessive pursuit of high returns, rarely mention risk. Therefore, in the face of exciting investment opportunities, we must think twice before we act!
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