What is a scam? –
“Scam is a fraudulent
business scheme” or “to deprive off by deceit” – (TheSage’s English Dictionary
and Thesaurus)
Scam is synonymous with fraud. It
is deception, make belief, trickery, pretense, cheating, e.t.c.
A lot of people have fallen one
time or the other to scam deals knowingly and unknowingly. Some got out
with partial loss, while others lost everything without a single recovery. Scam
victims usually suffer unbearable psychological pains due to the level of trust
built with the scammer and the loss incurred.
Unfortunately any venture with high potential
for money making is always alluring to scammers and Forex is one of those ventures.
Scamming
in Forex had been in existence right from when Forex began, only that it has
taken a new dynamic dimension in this current era. Forex Scam is the act of
fraudulently taking money from a client or customer with the intention of
providing a rewarding service for the client or customer, which is not true. In
some cases the services promised by the vendor could be rewarding or true but
at the long run, a glitch occurs due to either poor design or failure in the
service or product, and the vendor promises to make up for the loss and later
on disappears after months of negotiations without any refunds.
Examples of Forex scams include
ponzi schemes, which is more prevalent in Forex Managed Account Schemes like PAMM, Pooled
Asset Manager Scheme, and Pyramid Schemes.
WRONG PERCEPTION OF FOREX SCAM
Let’s get this right, not all
scam complaints are actually scams. A case scenario might look similar
when it’s being matched with real scam cases. But when you look deeply into
such complaints, you’ll find wrong perceptions and false alarms.
A lot of inexperienced Forex
Traders are quick to scream “I’ve been scammed” due to their level of knowledge
in Forex. If you fail to follow the instructions of a product, and experience losses then that’s not a scam. For example when a signal
service provider says “use default settings for accounts lower than $1000, and
do not adjust the Money Management Settings otherwise you will get undesired
results. However you’ll make little pips but on the long run your account will
grow steadily”. Then if an inexperienced trader gets impatient or greedy, and ignores
the warning by tweaking the settings in order to attain short term quick gain
in his account, such a trader would unfortunately experiences an undesired loss to his/her account.
Then let's assume the trader gets infuriated and sends series of complaints to the vendor about poor performances of the product and later request for a refund. When the vendor refuses based on the trader’s negligence, then a scam alarm is raised. Unfortunately this does not qualify for a scam case.
Then let's assume the trader gets infuriated and sends series of complaints to the vendor about poor performances of the product and later request for a refund. When the vendor refuses based on the trader’s negligence, then a scam alarm is raised. Unfortunately this does not qualify for a scam case.
Every forex product has its
threshold or required standards because they cannot be 100% perfect at all
times. And usually most vendors state this caution or disclaimer notice on
their website in order to protect users from unprecedented loss from market
uncertainties. So it is the duty of a customer to keep to the product’s
limits. When you go against it and face the undesirable consequences then asking
for refunds would not work, and establishing a scam case would be extremely
difficult.
When a trader uses a Forex
product not designed for news trading or for a particular trading session or configures the settings against
the design of the Forex Product and gets losses then the
trader cannot claim he/she has been scammed.
I’ve been scammed where can I get
help?
See: File a scam complaint and get help; or
Use our FXProbe (investigator) Services for guide on
handling a scam case.
To be continued....
In our next chapter of Forex Scams, we would reveal the Ten (10) Secrets of Detecting Scam Deals
Be the first to know. Follow us by email or Facebook. Include us in your RSS Feeds or Signup to receive instant alerts and FREE Bonus Tools.
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Protect yourself!!!
Knowing the true performance facts of that Forex Robot or Strategy could save you from getting scammed. This tool would help you dig deeper and reveal facts you never knew.
Get this FREE tool when you Signup with us.
When you trade with real money, you need as much information about your strategy as possible.
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See: File a scam complaint and get help; or
Use our FXProbe (investigator) Services for guide on
handling a scam case.
To be continued....
In our next chapter of Forex Scams, we would reveal the Ten (10) Secrets of Detecting Scam Deals Be the first to know. Follow us by email or Facebook. Include us in your RSS Feeds or Signup to receive instant alerts and FREE Bonus Tools.
**************************************************************************
Protect yourself!!! Knowing the true performance facts of that Forex Robot or Strategy could save you from getting scammed. This tool would help you dig deeper and reveal facts you never knew.
Get this FREE tool when you Signup with us.
When you trade with real money, you need as much information about your strategy as possible.
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 About Onyebuchim C. Obike
I am an IT specialist in Software Programming, Networking & Telecommunication. My quest for an alternative source of income led me into Forex since 2005. My encounter in Forex over the years made me to develop a site where traders can get reliable and effective Forex Resources & Tools, that would make them successful traders. I prefer combining Technical & Fundamental techniques in trading. Follow me on facebook: www.facebook.com/fxtradecity
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Forex scams seems inevitable but how can one avoid it?
ReplyDeleteA major way out is to carryout thorough investigations and inquiries about a product before purchasing it. Using major Forums for inquiries is a key to this.
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