The profitability of trading has led not only to an increase in the number of financial market players, but also to the emergence of many scammers who impersonate reputable brokers. Such pseudo-brokers, as a rule, throw clients for money and irrevocably transfer funds illegally received to offshore companies.
Scam brokers use a variety of methods to attract potential victims. The most popular option is to attract traders through cold calls. When calling potential victims, fraudsters carry nonsense about the profitability of investing, the prospects for trading with them, etc. Any pseudo-broker promises unrealistic profits almost on the first day of trading on the exchange. Of course, there are only a few promises made. But even if 1 out of 1000 people believed in the empty promises of scammers and gave them their money, pseudo-brokers will already be in the black.
The second option is to search for people who do not plan to spend time trading, but who want to have passive earnings. For such people, pseudo-brokers have an “offer” – an account manager. The result of “management” is always the same – the victim remains with empty pockets.
Among other fraudulent schemes, it is worth noting investment proposals in PAMM accounts with the possibility of obtaining a monthly profit of 20-30% of the invested amount. But in this case, it all ends with the failure and disappearance of money in an unknown direction.