What Are Bitcoin Forex Scams?
Most people have heard of “bitcoin” and “forex” but the actual workings of these financial products may seem abstract. Some may think bitcoin and forex are opportunities to make money fast while others may immediately associate the terms with fraudulent activity.
There is some truth behind all of these impressions. It is true that legitimate money can be made with forex and bitcoin trading, but that there are unfortunately plenty of bitcoin scams and forex trading scams.
Before buying or trading bitcoin or getting involved with forex trading, it is important for consumers to familiarize themselves with the actual workings of foreign currency exchanges and cryptocurrency.
Also, knowing how scams target victims and what tactics they use can help people stay safe from fraud. CryptoComplaint offers guidance for those who want to learn more about financial services and guidance to those who have been affected by fraud.
CryptoComplaint experts provide consumers with information about financial services and can assist people who have been affected by CFD scams, crypto scams, forex trading scams, and other forms of financial fraud. Our team has the resources to help consumers start the fund recovery process.
What Are Bitcoin Scams?
Bitcoin scams and other crypto scams work by either encouraging someone to buy digital currencies or to pay for a fake service with bitcoin. There are many types of bitcoin scams, including
- fake wallets
- bitcoin trading scams
- bitcoin phishing
- celebrity imposter social media bitcoin scams.
Of these scams, celebrity imposter social media scams are the fastest growing. These frauds work through people pretending they are celebrities and are recommending people trade bitcoin or other cryptocurrencies. They may offer to match a donation to a charity that turns out to be fake or double an investment. However, these deals turn out to be frauds.
What Are Bitcoin Forex Scams?
Forex is short for “foreign exchange.” it is a type of trading that deals with the differences in value between currency pairs, for instance, the USD/EUR. Many people feel that forex is easy to understand, especially if they have traveled in the past to places where they have needed to change money. However, actual forex trading is a great deal more complicated and involves significant risk.
Forex is the largest and most active financial market. Governments and large institutional investors trade foreign currency and this is one reason it is so volatile and difficult to predict. With a significant amount of experience, a seasoned trader can make money at forex trading, but people who think it is easy money often lose money.
Not only is forex trading risky to begin with, but there are also many forex trading scams. They can lure people in and ask them to open an account only to take their money and not make actual trades. Forex withdrawal problems are common and forex trading scams usually involve fake brokers who will not allow clients to withdraw funds.
What Are Bitcoin Forex Scams?
Bitcoin forex scams may be one of two types of frauds (or they can combine both).
- Brokers who claim to offer trading of both forex and bitcoin
- Forex brokers who will only accept payment with bitcoin or other cryptocurrencies
Legitimate brokers may offer a variety of trading products including, cryptocurrencies, forex, CFDs as well as commodities, indices, ETFs, and stocks. One sign of scam brokers is that they will offer only high-risk trading products, such as forex, CFDs, and cryptocurrencies. This is not definitely an indication of a problem, but it should encourage further investigation.
The second type of bitcoin forex scam is one involving a broker that will accept only cryptocurrency payment and a means to transfer money into an account. The reason the broker will only accept cryptocurrency is that it can be more challenging to reveal the identities of crypto transactions than those through bank transfers or credit cards.
Cryptocurrencies are not in and of themselves fraudulent but they tend to attract people who are involved in illegal activities because there are no names attached directly and openly to transactions. All transactions on the blockchain are recorded through ledger technology but without names.
However, cyber fraud experts can sniff out the identities of those who practice crypto fraud on the blockchain. Despite this, many fraudulent parties still persist in requiring payment only through digital currencies, which is a hallmark of these types of scams.
When Is It Safe and Not Safe to Pay with Crypto Currencies?
Paying with cryptocurrencies is not inherently unsafe. However, you should beware of merchants and brokers that do not offer several forms of payment in addition to cryptocurrencies. Those that demand payment only in bitcoin or digital currencies are often people who want to cover their tracks.
If you want to feel better about paying in cryptocurrencies, check that there are several options available and that the company or broker is legitimate.
What to Do If You Have Lost Money in a Bitcoin Forex Scams?
If you have deposited money in bitcoin to a broker and they have disappeared or are causing forex withdrawal problems, it is important to seek assistance immediately. Unfortunately, many people decide not to report bitcoin forex trading scams because they feel that the chances of tracking down the culprits and getting the money back are slim.
However, advanced technology and research are making it easier to track down cybercriminals than ever before. Not only will filing a complaint provide the information needed to combat bitcoin forex scams, but the likelihood of fund recovery from cryptocurrencies has never been greater.
The CryptoComplaint team includes professionals with various areas of expertise who can advise clients on every aspect of fund recovery from filing a complaint to retrieving money once the scammers are caught. We give guidance and support to those who have experienced fraud as well as information and resources to help consumers make the right choice.
Have You Been Affected by bitcoin forex scams? Talk to CryptoComplaint Experts
Consult with CryptoComplaint immediately if you have lost money to a CFD scam, a forex trading scam, a crypto scam, or another type of fraud. Our team can provide solutions and advice on how to seek restitution and recover from fraud.