Mille Lees Mille Lees, Wednesday 7th August 2019, 4:34 PM GMT+0000
Online Scams

Online Scams Ruining Investing

Thirty-five years after the creation of the internet, citizens of the world are still suspicious about trading or investing online. The original scams of the ’90s, where a price from Africa needed money was the first step towards people not investing online. Then in 2010, the digital currency scams had their boom. Scams regarding binary options, contracts-for-difference and FX Trades were circulating the web rapidly. Today, scams continue to plague the online world and stop countless individuals from investing with a cryptocurrency exchange for the first time.

The victims of these scams are often unsuspecting, and not aware of what they’re doing for themselves. Luckily, worldwide collection firms have been worlding with investors to return the funds lost from scams. On average, $11 Million is recovered monthly for crypto enthusiasts worldwide. Most of these investors are honest individuals, working for legal brokerages and maintaining finance licenses. Having your portfolio of cash stolen is a massive deterrent, having this kind of service relieves the financial pressure slightly. There’ll always be a rotten apple and then an economic regulator to squash them out.

Digital Currencies Future

Digital Currency has also struggled, with retail investors often being too optimistic for their good and not having a solid understanding of the trading process. Furthermore, a lot of retail investors don’t have proper education relating to cryptocurrency. Without this education, you cannot tell what emails are real. When things go sideways, it could be the result of a lack of knowledge on the investors part.

Most online brokerages have found that 80% of customers lose their goodwill and optimistic attitude when a scam is involved. Considering there’s no programs or services to help investors who’ve been scammed, it’s easy to see why they’d lose their goodwill. An unregulated, illegal company maintains almost every scam seen online from a foreign nation.

Trading platforms maintained by these brokerages often play out like video games, with assets being exchanged to another country and then redirected with fake currency to avoid detection. At any time, these foreign and illegal brokerages can shut down all their services with a click of a button.

It’s highly unlikely that any scam will be strong enough to destroy the pillars of cryptocurrency or blockchain. However, clients need to be more wary of the emails received by their cryptocurrency exchanges going forward.

Mille Lees

Author: Mille Lees

Millie has been with whichbroker.com since the start. She has a passion writing financial news after an internship at Bloomberg London. Millie's background in journalism and politics means she has an eye for a good story. Millie graduated from LSE and has a masters from Durham University England. Mille Lees can be contacted at [email protected],

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