Fraudsters are taking advantage of a rise in popularity of currency exchange online trading schemes with bogus claims of get-rich-quick schemes.
Foreign exchange â€“ or forex for short â€“ trading is a much more simplified version of stock market investments. Punters will use a website or app stake a â€˜callâ€™ or â€˜putâ€™ on the price of a currency or market, gambling on whether it will rise or fall. These apps have proved very popular due to the simplicity of the betting, known as binary options trading, and the promise of a quick return or loss on their stake.
Binary options trading is legal, but scammers are using the rise in popularity to promise huge returns with fake success stories. They have been setting up fake
In reality, this is an advance fee fraud. Victims have been told to send money ahead with a promise of huge returns with a cut of the profit, only to be blocked or ignored by the scammer after transferring money.
In some cases victims lose out twice, as theyâ€™re told their trading has been successfully and are asked to send more money to invest or to send a fee to release the profit theyâ€™ve supposedly made.
If youâ€™re approached by someone on social media who claims to have inside information on forex, do not reply and report them to us. Reputable brokers and investors donâ€™t use social media to personally offer investment. Like other forms of betting fraud, ask yourself why anyone would want to share their secret if their scheme is as successful as they claim?
Protect yourself on social media with GetSafeOnlineâ€™s tips.
To report a fraud and receive a police crime reference number, call Action Fraud on 0300 123 2040 or use our online fraud reporting tool.