The police are once again warning against rip-offs due to high profit prospects when investing on dubious online trading platforms.
But how exactly does it work? When looking for opportunities to invest money on the Internet, those interested are increasingly coming across very professional and appealing online portals that appear reputable. Such sites are also advertised on social media platforms or shared as supposed insider tips.
If the interested party has registered on such a trading platform and invested for the first time, an employee will contact you immediately. This supposedly competent financial broker tries to build trust as a “personal advisor”. The “advisor” then motivates the potential investors from initially financially manageable investments to increasingly larger investments. The decision is always left to the customer.
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However, pressure arises from offers that are supposedly limited in time. For weeks and months, the unsuspecting investor is led to believe that he has invested successfully. This type of fraud is another perfidious way to con people out of your assets. Similar to grandchild tricks or calls from fake police officers, this creates a bond of trust with the future victim.
The customer can view their account movements and alleged profits online at any time and see that their own investment decision is correct. This makes it easier to invest larger sums of money. In the end, however, there is usually a total loss.
The crux of the matter with binary options
The “personal advisor” promises quick profits with financial contracts for difference, so-called CFDs (Contracts for Difference), or binary options on stocks, currencies, raw materials or even cryptocurrencies, which usually involve speculation on rising or falling prices. However, he does not explain exactly how these investments work. This isn't relevant either:
Because the deposited funds are never invested and the entire trading platform and customer account are fake. The invested capital is usually irretrievably lost. Losses of up to EUR 50,000 are not uncommon.
When the investor wants to have his balance paid out, he slowly becomes aware that he has been a victim of fraud. Either contact with the trading platform is no longer possible or the alleged advisor cannot be reached. However, they often fake the crash of the investment and mercilessly exploit investors' fear of total loss.
The investor now feels dependent on the alleged advisor, who encourages him to make further payments to save the capital or subsequently to take out alleged loss insurance. Surprisingly, money transfers are also promised if bank, legal or notary fees have been transferred beforehand. But this money is then lost too.
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As part of investigations in collaboration with Europol, it was determined that the perpetrators from Southeast Europe and Israel were pulling the strings. The number of reported cases in Schleswig-Holstein is currently several hundred. In most cases, the injured parties escaped with the loss of smaller sums of around EUR 250, although large amounts of damage are not uncommon.
In one case, a 76-year-old in the Herzogtum-Lauenburg district was cheated out of EUR 455,000. The dark field is likely to be very large. Many people do not dare to report the crime because they are ashamed. The police still advise reporting any crime.
The Federal Financial Supervisory Authority (BaFin) points out the high risk of loss with CFDs and binary options. For over a year, financial service providers and credit institutions have been prohibited from marketing, distributing and selling binary options and CDFs to private customers. But how can you identify dubious trading platforms?
You should always be suspicious of offers that promise safe investments, guaranteed returns and high profits with very low risk.
Related to the topic: Investigators dismantle Bitcoin fraud ring!
Source: Ratzeburg Police Department
Article image: Shutteerstock / By fizkes
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