Like anything else involving a computer, forex trading (trading in foreign currencies) can leave you open to attacks from scammers and identity thieves. But you can avoid these online forex predators by using common sense and current computer security software. If you think you have been a victim of an online forex scam, contact the National Fraud Information Center and the US Securities and Exchanges Commission (SEC).
You’ve Got The Tip. Now What?
You can get hot tips from a variety of places on the web, even if the places look legitimate. Hot online forex tips can be found on websites, investment forums, in personal finance chat rooms and your e-mail’s inbox. Use your common sense; if the information sounds too good to be true, it is.
Run the tip through this checklist to see if it could be online forex fraud:
Are there a lot of promises of a high returns and low risks? In the investment world, there is no such thing!
Is the investment in another country? That makes it harder to trace where your money actually is going.
Does the informant use a name or an alias?
Go to the website of the US Securities and Exchange Commission (the SEC) and see if the company mentioned in your tip has filed “Form D”.
If your hot tip can’t pass this checklist, it’s a scam. The SEC would love to see a copy of this email.
Targets The Elderly
44% of the complaints the SEC gets are from victims of investment fraud, and 31% of those victims are over 65. Investment fraud, in this case, runs the gamut from the traditional stock market to online forex trading. Investment fraud in particular targets elderly Americans. If you have an elderly relative who has internet access who talks about getting a great stock market tip, better check out the tip, whether it was from an email or a link to a website.
Keep Your Software Updated
Since online thieves keep coming up with new means of getting their hands on your money or your personal information, you need to constantly update your computer’s software, platform and any extras like video or music players. These updates are usually free and automatic, but sometimes you do have to start them manually. These updates keep you on top of the latest online criminal’s tricks. Be sure you have an anti-virus program, a firewall, a spam filter and a spyware program.