The global trading landscape has become increasingly complex, with new technologies and products being introduced at a rapid pace. This has created new opportunities for scammers and fraudsters who are looking to take advantage of unsuspecting investors.
There are a lot of scams and frauds out there that have seen people lose billions of pounds, and it can be hard to tell the difference between a legitimate offer and a con. It is therefore important to do your research so as to know how to avoid forex fraud.
Five tips to help you mitigate fraud while trading
It is important to be aware of the risks associated with trading in order to protect yourself from becoming a victim of fraud. There are a number of steps you can take to mitigate the risk of being scammed.
- Use a secure internet connection
Using a secure internet connection helps to protect your personal and online data from being stolen. If you connect to the internet from a public location, such as a cafe or airport lounge, your network traffic is more vulnerable to attack.
This is why using a VPN (virtual private network) is essential when using the internet for your trading purposes. A VPN encrypts all of your digital data and effectively makes it invisible so that no-one can see it.
- Use anti-virus software
It is highly advisable to run anti-virus software on your computer. Make sure that you regularly update your anti-virus software and scan your computer at regular intervals to ensure that it is functioning correctly and protecting you from potential viruses, malware and other online threats.
- Trade on a website that is reputable and well-known
You should only deal with reputable websites, such as major brokerage firms. These are the safest places to trade as they have been around for some time, have solid track records and possess large customer bases. They have also implemented security measures to protect their clients from online threats.
- Be careful when sharing private information
When opening an account with a broker or trading platform, you will be required to share your personal information, such as your name and address. It is imperative to keep this information secret, as it can provide an opportunity for identity thieves and scammers who may be interested in obtaining your sensitive information.
When conducting any type of transaction via the internet, ensure that you always use a secure form of payment such as a credit card, reputable e-wallets such as PayPal or Skrill, and money wire transfer.
- Be wary of offers that are too good to be true
If you are approached with an offer that is just too good to be true, then it’s probably a scam. It is normal for people to want to make a profit through trading, but if you are offered a guaranteed profit or the opportunity to double your money in a matter of minutes, then it is likely that it is a scam. Nobody can predict the future with 100% accuracy!
Final thoughts
Before you decide to trade with a broker or platform, ensure that you are aware of the risks involved, particularly if you are new to trading and have not traded before.
