How do you avoid falling into a Forex MLM Scam?
In the current digital age, scams and frauds have become more rampant and easier than ever. In the past, scammers will probably have to the physical phone to extort you or a scam artist will have to slowly gain your trust before they finally have access to your money. In all aspects, scammers have only 1 thing common objective, that is how to get your money.
In less than 10-20 years, the most common scams are pyramid MLM scams, or networking scams, which is to get people to pull other people to join the same scam so that they get paid off, and often only the top of the pyramid makes money, and such models are unsustainable because they offer no real value in the use and growth of their products & services. Latecomers are paying for the earlier ones. A pyramid scheme is a sketchy and unsustainable business model, where a few top-level members recruit newer members, who pay upfront costs up the chain, to those who enrolled them. As newer members in turn recruit underlings of their own, a portion of the subsequent fees they receive is also kicked up the chain. Often called “pyramid scams,” these operations are illegal in almost all countries today.
Key takeaways of Forex MLM Scams
- Both pyramid schemes and Ponzi schemes involve unscrupulous investors taking advantage of unsuspecting individuals by promising them extraordinary returns in exchange for their money.
- With Ponzi schemes, investors give money to a portfolio manager. Then, when they want their money back, they are paid out with the incoming funds contributed by later investors.
- With a pyramid scheme, the initial schemer recruits other investors who in turn recruit other investors and so on. Late-joining investors pay the person who recruited them for the right to participate or perhaps sell a certain product.
Since the growth of mobile phones technology with access to better internet access through mobile, better computer specs and pretty much the entire world is linked on the internet. Scammers have learned and grown to hone their skills with sophisticated modus operandi in today’s digital era. With more spending online and wider access to internet-banking, people are more susceptible to fall into financial scams and all forms of marketing scams in some way or another. It’s common that more than 5/10 online users have been cheated/scammed someway or another during their purchases online into any goods & services.
In this post, we want to focus only specifically in Forex MLM Scams.
What made Forex one of the best possible scams within the last 10 years was because Forex itself is decentralized, and it’s not traded through a proper exchange, with that said, there can almost be no tracking and audit required which can possibly leave no traces. In this post, we will talk about how Forex Scams actually works and how do they package in a way to con and fool naive investors and traders to be part of it.