All of you may have heard of pyramid schemes, the essence of which refers to multilevel marketing (MLM). Scams in this category that have been disclosed include IGOFX, PTFX, and Starfish, causing investors severe losses. Old tricks repetitively used in this regard are presented as follows:To get more news about WikiFX, you can visit wikifx.com official website.
1. Renting luxury offices
Forex brokers conducting pyramid schemes generally operate their businesses in CBD, aiming to testify their strengths and capabilities. However, luxury offices they claim to own may well be rented by them in fact, conducive to fraud carried out by them amid a short-term lease.
2. Fabricating background information
Forging to be competitive, swindlers may pretend to be local presences of overseas forex brokers, authorized by governments and relevant regulators. Traders can verify this information by directly contacting involved overseas institutes or authorities.
3. Acting as CEO
Basically, every pyramid scheme is equipped with a CEO who boasts experience in Wall Street even photos with heavyweights whereas the reality is that the so-called CEO is played by an actor/actress, and the aforementioned photos are available just for a certain amount of money.
4. Being hypocritical
Under the guise of charities, scammers claim to impart knowledge of being rich to people and call on them to spread, a way to take advantage of their kindness and greed with an aim of luring them to MLM in the name of direct sales.
Please distinguish these ‘charities’ from investment and prudently verify the qualifications of forex platforms!