Trading signals have become popular among digital marketgoers looking to up their game. Such tools are especially popular among beginners and those who just want to profit with no effort. Naturally, scammers saw an opportunity to use these signals as a ruse and run their deceptive schemes.
A trading signals scam can lead to significant losses, which is why due diligence and education are key. In our in-depth article, we shall analyze what trading signals are, who sells them, what the common scam methods are, and what to do if you get defrauded.
What Are Trading Signals?
Before we start, let’s explain what trading signals are. These pieces of information are basically recommendations or tips provided by pro traders, analysts, or automated systems that suggest when to buy or sell an asset. For example, Forex signals are pretty popular.
These signals are supposed to be based on technical and fundamental analyses and historical price movements and are intended to help traders make better decisions. Nowadays, the best trading signals are generated by algorithms and automated systems, minimizing the space for human error.
Who Are Signal Sellers?
Signal sellers are individuals or organizations that charge traders fees for their trading signals. Similar to sports betting tips, these people may claim to have insider information or access to sophisticated trading algorithms.
Although some sellers are transparent and provide valuable insights, others are deceitful and may use cutthroat tactics to dupe unwary traders into buying their fraudulent services.
For instance, Fred Trading is a swindling Forex signal provider who we exposed for running a shady affiliate campaign using fake signals. Speaking of affiliates, it’s just one of the scam variants con artists like. In the following section, we will analyze how trading signal schemes work.
Common Signal Seller Scam Methods
We owe you an explanation of the affiliate scheme from the previous section. Here, trading signals are used as a ruse to lure users into clicking on the affiliate link and opening an account with a certain broker. In exchange, the link sender gets a reward.
The signals they promised are either fake or non-existent. However, this is a later stage of the scam. What we are interested in is how these dubious providers find potential victims.
As you may have already guessed, social media and messaging apps are their favorite tools. Time to take a look at how they go about realizing their devious plots.
Social Media Signals
Social media is swarming with fake trading signal sellers. One common fraudulent method is to promote these hoax products on popular platforms such as Facebook, Instagram, and X. Sometimes, they may promote free trading signals to get the scheme going.
The signals are often accompanied by flashy advertising and promises of high returns in short periods with little to no risk. In reality, the promoted material is worthless and expansive, putting anybody who buys into it in a lose-lose situation.
Telegram Group Signals
Telegram has grown in popularity and has become a staple messaging app among traders and investors. There are countless groups and channels dedicated to trading signals. One part promotes legitimate insights, while others are outright scams that manipulate traders into falling into traps.
They may send misleading stock signals to get customers to make losing trades and then blame it on price fluctuations and volatility. There have also been instances of AI-backed crypto signals on Telegram and WhatsApp that turned out to be fake.
WhatsApp Group Signals
Aside from Telegram channels, WhatsApp groups are also frequently used to promote trading signals. Digital swindlers use this popular app to communicate with potential victims and persuade them to purchase their fake signals.
It’s important to be cautious when joining any trading signal group on WhatsApp. Better do your research and investigate the participants of the group before agreeing to subscribe to any of the offered services.
Beware, many of these private chats offer unreliable option trading signals that are based on pure speculations rather than meticulous analyses and research.
What to Do If I Fall Victim to a Fake Signal Seller?
These snake oil merchants are particularly cunning and good at their craft. Their silver tongues help them achieve their rotten goals. It’s no wonder many unwary individuals fall victim to fake trading signals.
Nevertheless, if you believe a fake signal seller has gotten the better of you, there are a few steps you must take to prevent further financial damage and recover the money you’ve lost:
- Stop trading – Upon noticing that the signals are a hoax, immediately stop trading to prevent yourself from incurring additional losses.
- Contact the fraud – Reach out to the signal seller and tell him to return your money. It might work since some scammers are afraid of having to face legal consequences. If that’s not the case, resort to the following two steps.
- Report the scam – Inform the relevant financial regulator and law enforcement in your country about the incident. Provide them with useful documents and evidence to support your case.
- Hire a chargeback company – Depending on the method you used to pay the fraudster, you can request a refund. For instance, credit/debit card payments can be reversed via a chargeback. There are professionals who help victims of online fraud retrieve their funds. If you need help, Reclaim Block is at your disposal.
Conclusion
What have we pointed out so far? Trading signals are valuable to those seeking an advantage and scammers aim to exploit these tools. It’s thus crucial to be on guard and conduct research before purchasing any signal service.
Double-check your provider to make sure they have a proven track record and positive reviews to their name. Protect your funds by being wary of the common scam methods we described. In case you’re a victim, book a free consultation with us using the web form below. We will come up with the best solution to getting your hard-earned money back!
FAQ Section
What are trading signals?
Legit trading signals are recommendations provided by seasoned traders, analysts, or automated systems showing you when to buy or sell assets.
Which platforms do scammers use to find victims?
Financial swindlers rely on popular social media platforms such as Facebook & Instagram or messaging apps such as WhatsApp & Telegram.
How to recover funds lost to fake signals?
Get in touch with a chargeback company and present your case to them. They will outline all the available options for getting a refund.
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