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Spotting a Well-Made Investment Scam

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Spotting a Well-Made Investment Scam

Introduction

This article was posted on Tuesday, 23:14, UTC.

For every reasonably safe investment, there are 1000 scams and 10,000 reasonably toxic investments. Self-served advertising via social media and search engines exacerbates the problem – people sometimes click ads they think were search results, or, as humans are intended to, simply consumes the content on the screen instead of paying attention to where they’re being redirected to.

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In this article we will review a recent example of a well-executed investment scam.

The intended victim, who did not actually get scammed but alerted this author to the hustle, was led to believe that the above image was redirecting to a CNN news article. This is the actual URL the link went to:

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http://cnn.com-cat.press/anonymous-is-going-after-global-stock-market/?aref=http%3A%2F%2Ftrck.anony.trade%2Fsite%2Fredirectpage%3Fsid%3D99462%26hv%3Dgjalu5988de395a461839785307%26hid%3D264193#!

Now if you visit com-cat.press, all you see is a directory listing. This site’s entire purpose is to make people believe they are visiting legitimate .com websites, when in fact they are visiting others. It doesn’t always have to be a scam, sometimes it is simple an advertisement, but often enough it is a definite funnel to a scam. In this case, here’s where you wind up, at a place that looks an awful lot like CNN Money:

Again, this is not a real article on CNN. This is promotion for 10Markets.eu.

10Markets.eu is extremely professional looking. The platform looks to capture your details even just for demo trading. Most traders expect hurdles, so one can imagine tons of phone numbers and e-mail addresses entered:

The demo trading screen never loaded for this analyst, but the phone number is fake anyway. Took it from a coffee shop in Germany. Funnily, it appears the German exchange code is 030 in the first place, but you can’t edit that part. They also don’t allow you to visit the site at all if you’re in North America.

The tipster was clever enough to find out if 10Markets.eu was a registered broker or not. They’re not. According to ForexBrokerz.com:

10Markets is a forex and CFD broker that is headquartered in Scotland [sic] and supports the popular MetaTrader 4 platform. It is not licensed by any authority and there is not much information about the trading conditions on its website. What is worse, this broker is present in the warning lists of UK’s FCA, Australia’s ASIC and Cyprus’ CySEC, so we don’t recommend doing business with 10Markets.

There are review websites which help. Regarding 10Markets, we came up with this one.

The tipster happens to have been our own Jonas Borchgrevink. He is equipped with years of experience in website publishing, and this is why he quickly noticed that he was not reading a CNN article. The sad fact is that a high percentage of people who read that article believe it to be real, and a percentage of those people end up getting scammed. As such, here is a checklist for new trading outfits that you haven’t used or heard about before:

  • Always try to get phone support right away. Before creating an account. If no one answers or there is anything suspicious, this is a scam.
  • Always search for “[EXCHANGE NAME]” + “scam,” and read carefully any results that come up. Most scams could stop at one person if others listened to that one.
  • In the US, you can use FINRA to check the legitimacy of an exchange or broker. In the UK, you have FCA. Many countries have sites like these, and it’s important to check the one from the country where the broker does business.
  • Use ad blockers at least when legitimately searching for financial solutions.
  • Check the URL! For every legitimate exchange website, there are a few fake ones designed to steal your account information.

In The Event That You Spot A Scam

Tattle! Spread the word far and wide, not just so others don’t get scammed, but also to give authorities the jump on the thieves. Otherwise, they may exit and get away with all the money before anyone stops them.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

P. H. Madore

P. H. Madore

http://phm.link

P. H. Madore has covered the cryptocurrency beat over the course of hundreds of articles for Hacked's sister site, CryptoCoinsNews, as well as some of her competitors. He is a major contributing developer to the Woodcoin project, and has made technical contributions on a number of other cryptocurrency projects. In spare time, he recently began a more personalized, weekly newsletter at http://ico.phm.link

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