Instagram is one of the most well-known social networking platforms with over 2.35 billion active users. Unfortunately, many of the millions of users on this website are bogus or fraudsters who utilize their tactics and schemes to con innocent people.
Trading scams are the most popular type of scams that seem to occur on social platforms like Snapchat and Instagram, particularly on platforms used for trading cryptocurrencies and Forex.
The reported quantity of money lost has also increased. It used to be around £60,000 per month on average before the pandemic, but it is now closer to £200,000.
A fraudster on Instagram is usually easy to spot because they usually post pictures of their luxurious lifestyles, sell signals, offer courses, and hardly ever provide trade setups before the market moves.
People fall into this trap because they want to live in that world and believe it, especially now that young people are having trouble finding work.
To help you safeguard yourself and your hard-earned money, I’ll be providing advice in this article on how to recognize the obvious signs of a Forex trading scam on Instagram.
They offer too-good-to-be-true investment opportunities
The first indication that someone is a fraudster on Instagram is when they ask for money and promise to double it in a week or two. Someone who guarantees you returns on your investment of 300% to 400% within a few weeks (or even months) just cannot be legitimate.
Scams involving Forex sometimes promise unrealistic profits with little to no risk. Scammers will apply high-pressure techniques to persuade investors to deposit significant quantities of money into a trading account by making guarantees that the money will be used to produce profits.
There is no such thing as a 100 percent guarantee. If there were, dealers wouldn’t ever disclose information to other market participants. Some of these offers seem attractive, especially to new traders.
Lack of regulatory information
Always verify whether the organization giving you the “Deal” is actually authorized by checking the registration of your local financial authority (such as the FCA or FSCA). This goes for individuals as well as firms. Needless to say, scammers are not registered with these regulators.
Check the fraudulent lists that multiple financial agencies have created to determine if the name or website of the scammer is included there. Fake brokers often lack proper regulation or use false credentials to gain trust.
Due to the large audiences that Instagram pages have established, this social media platform has developed into a tool that most of these Instagram experts utilize to attract the interest of many beginners. In some cases, this is followed by untrue assertions that anyone can profit quickly from Forex trading without assuming any risks or paying any extra cost. In order to persuade individuals to invest in their plan, they would also share images of fake bank accounts.
These people appear on the platform to display their luxurious lifestyles, expensive automobiles, hindsight trading analyses, and flashy trading outcomes while offering their audience the greatest mentorship and educational opportunities.
The most active Instagram user, Jonathan Reuben, spoke on the BBC Money Box program and disclosed the Instagram fraud he fell victim to. He was motivated by the scammers’ extravagant lifestyle and his rose gold Maserati, which he used to advertise his supposed success and wealth. The scammer tricked him, and he lost £17,000.
When someone on social media looks too good to be true, you should be suspicious since it generally isn’t. If you’re thinking about investing in Forex, you should always do your own research and look for reputable sources rather than fall for false promises and fabricated proof.
Never put your complete trust in quick-rich schemes. These false claims often come along with reviews and testimonials from supposed clients who never actually existed.
Signal seller scams
The people who send out trade ideas via Forex signals often provide a currency pair, direction, entry price, stop loss, and target levels. The majority of signal-seller scammers simply take money from a specific number of traders, then vanish.
Some may advise a profitable transaction every so often in order to keep the signal money flowing. It pays to be cautious, even though some signal sellers are reliable and perform trade activities as promised.
Ensure that no information offered by the signal supplier has been changed to make their services seem more attractive than they actually are. Scammers who claim to offer winning signals or trade on your behalf in exchange for money Avoid paying for managed accounts or trading signals. Carry out your own analysis.
Customers are frequently attracted by promises of instant money and financial freedom in Forex training scams. They purposefully raise unreasonable expectations by presenting Forex trading as a simple way to generate money.
Trading, however, is a complex activity that calls for in-depth expertise, talent, and a systematic approach to risk management.
They offer fake trading courses
A few of the fraudulent Forex traders provide free “Get Rich Quick” trading courses, but the majority fall short of their claims. Scammers frequently charge high fees for Forex courses that merely cover the fundamental knowledge that is readily available online for free.
Without going into the complexities of Forex trading, they might discuss the basic parts of technical and fundamental analysis, explaining straightforward indicators or fundamental economic ideas.
In order to convince customers to purchase their course, scammers can also use aggressive sales techniques. This can include time-limited discounts, made-up testimonials, or warnings that there aren’t enough spots.
At that point, it became obvious just how devious these fraudsters truly are. They try to deceive unwary victims out of their hard-earned money by making false promises and including unexpected fees.
Because of this, I strongly advise everyone reading this post to exercise caution when looking into any online investment options, especially those involving foreign exchange markets, because you never know what kind of dangers may be hiding beneath a seemingly appealing offer.
Before you buy any course or purchase any mentorship program, ensure that you have done a lot of background research on your potential mentor.
Scammers often push for crypto investments
When you’re trying to spot Forex scammers on Instagram, one big sign to be careful about is if they ask you to make deposits into cryptocurrencies. This isn’t just a random choice they’re making – it’s a sneaky plan they’ve thought up to scam you.
They are basically taking advantage of how cryptocurrencies work. They know crypto recovery especially Bitcoin recovery is the toughest one.
As you know, cryptocurrencies are decentralized and are designed to be really hard to track and figure out who’s using them. They know, you can’t get your crypto back without a crypto recovery services and people often don’t hire crypto experts due to insecurities.
Scammers love this because once you give them your cryptocurrency money, they can easily disappear. You can surely never get it back. Scammers know this pretty well and use it to trick people.
So, if someone on Instagram – or any social media site – tells you to give them your money in cryptocurrencies, it’s like a big warning sign waving right in front of you.
What is the best way to stop the Instagram Forex scam?
The most effective method for avoiding investment fraud is to take your time. Make sure to weigh all the advantages and disadvantages before making a decision, and don’t rush.
Although it can be difficult to choose a trustworthy Forex broker, the time you put in will pay off in the long run. The first thing you should do after learning about a Forex broker or agency is conduct a Google search for their name.
Visit trusted websites to look for user testimonials. Stay away from that service provider if there are none or if they appear to be fraudulent. A Forex broker’s reliability can also be determined by reading scam reviews, which you can do as well.
Avoid opportunities that appear too good to be true. Never believe anyone who claims it’s simple to make money with a “50% gain per month” or anything similar.
It’s completely useless because trading Forex involves a significant amount of screening time, expertise, patience, and quick thinking to be profitable. No quick money is available in this situation. But if you invest the time and acquire the right techniques for trading, you could be able to create a second source of income.
It’s important to exercise caution and be informed about the possibility of Instagram FX trading scams.
You must identify and stay away from any accounts or people who show a lavish lifestyle complete with expensive cars and jewelry, promote Forex signals or courses, or make exaggerated claims about how much money they can make in a short amount of time.
Make sure that you do not invest blindly in an Instagram trader.
Are Forex Traders on Instagram Real?
Just like you and I use Instagram for specific purposes, traders also utilize IG to achieve their goals. For instance, there are indeed many real Forex traders on Instagram who want to expand their networks and build a larger audience to enhance their profits through their strategies. This mirrors how businesses operate.
However, scammers take advantage of this platform as well. They exploit your interest in trading. To stay safe, conduct thorough research, verify their credentials, and exercise caution when encountering individuals who promise unrealistic gains.
Why Do Forex Traders Follow Me on Instagram?
Forex traders might choose to follow you on Instagram for various reasons. Legitimate traders might have a genuine interest in networking and sharing knowledge, as this can foster trust and collaboration—a mutually beneficial scenario.
Yet, scammers also employ the same strategy. Therefore, it’s essential to discern whether you are interacting with a Forex Instagram scammer.
How Can You Identify if You’re Dealing with a Scammer on Instagram?
Recognizing a scammer on Instagram entails paying close attention to specific signs. Here are a few indicators that aid in identifying scammers on Instagram:
1. Offering investment opportunities that sound too good to be true.
2. Lack of regulatory information.
3. Flaunting a flashy lifestyle.
4. Engaging in signal seller scams.
5. Providing fake trading courses.
6. Pushing aggressively for crypto investments.
By remaining vigilant and aware of these signs, you can better protect yourself from falling victim to Instagram-based scams.