How to Spot and Avoid Common Trading Scams

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Online trading continues to grow in popularity—but so do fraudulent schemes. Scammers are becoming increasingly sophisticated, often posing as legitimate companies or promoting too-good-to-be-true investment opportunities. Understanding their tactics is the first step in protecting yourself.

One common tactic involves impersonating real financial firms. These “clone” scams use fake websites, emails, and phone numbers that closely resemble those of regulated brokers.

What to look out for:

• Promises of guaranteed profits with no risk
   
• Falsified documents that appear official
   
• Pressure to move funds into so-called “secure” accounts
   

Always cross-check company details with your local financial regulator before taking any action.

As interest in cryptocurrencies grows, so does fraud. Scammers create fake trading platforms, pump-and-dump schemes, and fraudulent tokens designed to lure in unsuspecting investors.

Warning signs include:

• Claims of risk-free returns or unusually high profits
   
• Fake reviews or social media endorsements from supposed “influencers”
   
• Requests for payment in cryptocurrency, making transactions hard to trace or recover
   

Approach any crypto offer with extreme caution, especially if it comes unsolicited.

Avoid screen-sharing during calls or online sessions. Scammers can exploit this to access your personal details, account info, or convince you to make unauthorized transactions.

Your One-Time Passcode (OTP) is private. No genuine financial institution will ever ask you to share it. If someone does, it’s a clear red flag.

Phishing emails are designed to trick you into revealing sensitive information. Be wary of messages that contain:

• Generic greetings like “Dear Customer”
   
• Urgent demands to verify your account
   
• Suspicious links or attachments
   

Always verify the sender and avoid clicking on links you don’t trust.

• Enable Two-Factor Authentication (2FA) on all accounts
   
• Keep your devices and software updated with the latest security patches
   
• Use strong, unique passwords for each account and change them regularly
   

• Verify broker credentials with your country’s official financial regulator before sending any funds
   
• Be skeptical of unsolicited investment opportunities—especially those promising “guaranteed returns”
   
• Use only trusted, regulated platforms for trading and investing
   

You can also use a broker verification tool to check the legitimacy of a company before engaging with them.

If you come across a suspicious offer or think you’ve encountered a scam, report it right away to your local financial authority. By acting quickly, you help protect yourself—and others—from falling victim to fraudulent activity.

Staying informed and cautious is the best way to keep your trading journey safe.