With the use of popular social media such as Instagram to invite people to the world of forex trading, maleficent scams and frauds also emerge.
Instagram, a social media platform for sharing pictures, has become a profitable source for this kind of scams. Among financial scams that exist on Instagram, forex scam is one of them.
Despite the scams being apparent or not, they still managed to lure numerous of novice traders into their demise. This Jordan Belfort-inspired scam has been widely popular on the Instagram for years.
There are, however, several indications that are identical with forex scams existing on the platform. Some of them are available below.
Also Read: A Story of Someone Who Experienced Forex Scam
Flexing on Wealth “Slightly Too Much”
Most forex scammers on Instagram tend to show off their luxurious stuffs such as sport cars and other to try proving that they “make much money” through trading.
Take the get-rich-quick forex trading scam by Gurvin Singh for example. His scam scheme has baited approximately 1,000 investors and earned him £3.527million.
Ridiculous Offer
Still talking about Singh’s case, he began his fraud journey by contacting random people, mostly between 17 and 25, on Instagram. He ensured his victims that they can earn profits of up to £300 a day.
Another ridiculous offer is that victims can withdraw money at any time they want to. To gain the trust of their victims, he will make early-month trades working before finally emptying his victims’ accounts.
Unjustifiable Claim
To make himself sound reliable, Singh said that he was an authorized forex trader. Of course, his claim comes with no valid evidence.
In order to reassure his victims, he also stated that he had several WhatsApp groups consisting of hundreds of investors. This one was also unjustifiable.
Waiting for Opportunity
Last but not least, by examining Singh’s case, he waited for the right opportunity to conduct his scheme. At that time, Brexit was a very hot topic.
By having the right moment, he would be able to make excuses should any of his victims ask why the trade did not work. According to his case, the plan worked.
Also Read: Sources of Forex Scam and How to Avoid Them
