Scams are something that have been around just as long as currency. If there has been a way to steal, chances are that it has been done. However, these days, con-artists are using social media to take their devious actions to the next level. One of the most common complaints we're receiving here at Binary Scam Sniffer is a scam that is taking hold in social media. Today, we'll talk about how the scam works, the red flags you should be watching for, and what you can do to prevent yourself from becoming the next scam victim!
How Traders Are Getting Scammed In Social Media
Imagine this… You log into one of your social media accounts to see what's going on in the world around you. Surprisingly, you're approached by a stranger that says he is a professional binary options trader, and due to his success, he's now offering his services to consumers. He offers several plans and seems legitimate. All you need to do is wire him the money, and he'll do the trading, paying you every two weeks. So, you wire the money. Unfortunately, the professional trader is a pro, but he's not a trader. He's a professional con-artist and you have just been scammed! The scammer is happy, and you… well, you've got a couple thousand dollars less in your pocket! I know, everyone says, “It can't happen to me.” That is, until they become a victim. Here's what you should be watching for.
Common Red Flags
A Binary Scam Sniffer informant has provided us with a transcript of a conversation they had with one of these con artists. This gives us a great opportunity to point out some of the red flags you'll notice from these scams…
Website – The first give away that someone is trying to scam you is that they have no website. It's the year 2016… everyone has a website. If the trading professional does not have a website, chances are that he's not a trading professional. Here's what happened when our informant asked about a website…
Informant – “do you have a website? Does it work?”
Con-artist – “i have four investment plans. Bronze, silver, gold, and the rollover plan.”
Notice that while a website was asked for, no website was offered.
Guaranteed Gains – The truth is that no legitimate trading service is going to offer any level of guaranteed gains. However, con-artists do it all the time. In fact, in the conversation with our informant, a con-artist guaranteed gains as high as 80%. Here's what he had to say…
Con-artist – “How much do you want to invest?
Bronze investment plan is from $1000-4999, with profit of 60% every two weeks
Silver investment plan is $5000-9999, with profit of 70% every two weeks
Gold investment plan is $10000 and above, with profit of 80% every two weeks
The rollover plan is an investment plan that runs over a long period of time and the minimum investment is $5000.
Which of the plans are you interested in?”
Informant – “Well. Is the profit guaranteed?”
Con-artist – “Yes it is.”
Informant – “cool. 80% is a great return indeed
Does that mean that I will get $8000 in two weeks in profit if I invest $10000?”
Con-artist – “yes”
As you can see, the con-artist guaranteed a profit of $8000 every two weeks. This would never happen if the trader was legitimate.
How Money Is Deposited – A reputable trading service will ask for a deposit directly at their website in most cases. However, scams tend to go through wire transfer services like Western Union as they are harder to track and there is little to no recourse for the con-artist. Here's how the con-artist tried to get our informant to deposit the money…
Con-artist – “profits are paid every two weeks through the exchanger
Exchangers are used to guarantee security of funds – it’s a good investment opportunity – just let me know if you have any questions”
Informant – “what's an exchanger?”
Con-artist – “They are a third party in financial transactions, they guarantee fund security.
They also enable a trace in the event of any fraud
So I use exchangers to enable my clients to know that I’m a sincere trader”
Informant – “through which exchanger we will work?”
Con-artist – “i use any exchanger that is available to me at the time of the investment
I use western union exchangers
Once you are ready to invest, I will give you the details of the exchanger”
As you can see, the con-artist in this situation, came up with a made up service from Western Union in order to get the victim to send money.
Our Informant Isn't The Only Person Receiving These Messages
Unfortunately, our informant isn't the only target on these con-artist's lists. Here's a message we recently received from a reader of Binary Scam Sniffer…
“I was given details for this guy by another Facebook user claiming he is a good trader for binary option
“I talked to him and then I sent him £500
He gave a Russian name and details
Money went then he said u can get money after a month
It was Xmas period so he said I will do after xmas
I asked for screen shots of my account and balance as I was told he could not provide at that moment, but he said don't worry u in good hand
After xmas he disappeared”
How to Avoid Scams From Social Media
Unfortunately, this scam is growing in popularity. However, you don't have to be the next victim. In order to avoid these scams, avoid people on social media saying that they are professional traders offering a trading service. If they don't have a website, they're likely not legitimate. Also, never jump at the opportunity to make guaranteed profits in the market. There's no legitimate service that is going to offer this guarantee as no one knows the future and no one can make 100% correct predictions. Finally, if the service is trying to get you to wire money through Western Union or any other like service, chances are that it's a scam… stay away!