To avoid futures scams, investors must be cautious. Unregistered brokers will try to sell binary options, forex programs, or cryptocurrencies. These transactions are conducted over the internet, primarily through social media or messaging apps. Fraudsters may claim to be a stock broker, portfolio manager, or investment firm. Scammers will often tell victims that they are making high-profit investments in low-risk assets and will disappear as soon as they stop paying.
Be suspicious of website testimonials. Some sites will post unreliable testimonials. Another warning sign is an online messaging application. The website may ask consumers to deposit money directly into the broker’s wallet. The underlying financial risks are unknown. It’s therefore critical that customers check the reputation of the firm before investing in their products. Be cautious of companies claiming to be “independent” or “objective.” The CFTC recommends that investors be wary of these “review” sites.
A scammer will often contact victims through discussion groups and urge them to make a deposit directly into their account. This is a scam because the phony brokers often claim that the performance results they advertise are based on hypothetical trading. The FCA warns people to be skeptical of false claims made by trading systems. The most common bogus claims involve high returns and unrealistic expectations. Although these schemes may appear legitimate, they are usually not.