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What are online trading scams, and how do they operate?

Forex or stock trading is the practice of buying and selling financial instruments such as stocks, bonds, currencies, and commodities in the hopes of making a profit from fluctuations in their prices. Traders may either purchase and hold a particular asset for a period of time or attempt to forecast the direction of price movements in order to buy or sell at the most advantageous time.

Forex or stock scams are investment schemes that involve convincing individuals to invest in what is promised to be a guaranteed return with minimal risk. These schemes often involve promises of high returns, low risk, or the use of complex strategies that are difficult to understand or verify. In many cases, the individuals running these schemes will encourage their victims to invest more money and may even threaten legal action if they do not comply. In some cases, these schemes can be difficult to detect as they may appear legitimate and may even use legitimate financial instruments such as stocks and foreign exchange.

What happens behind the scene?

Online trading scams involve brokers manipulating prices and trading against their clients. In an A book scam, the broker acts as an intermediary between the client and the market, and is required to fill all client orders at the best available price. In a B book scam, the broker will trade against their own clients, taking the opposite side of the clients’ trades and profiting when their clients lose money. This type of practice is illegal in most countries, however some brokers still engage in it. .The traders are not aware of the broker’s trading activities. The broker or a trader acting on behalf of the broker will contact the client, using a false identity to induce the client into making investments in one market (the A book) and others that are actually designed to cause losses for the clients (B books). The broker will also help create fake market orders to fool other traders, making it difficult for them to identify which side—the “A” or “B” side—is running an illegal scam.

How Can I Avoid Online Trading Scams?

It's always important to stay vigilant when it comes to online trading. Here are a few tips to help you protect yourself from scams: research thoroughly before investing, look for regulated brokers, and never share your personal information with anyone. Arm yourself with the knowledge needed to make sure you don't fall victim to fraudulent online trading activities!

What is a token, ICO, and how does a SCAM occur?

A token or an ERC-20 smart contract is a type of digital asset that exists on the Ethereum blockchain. Tokens are developed using the Ethereum blockchain and are used to represent a variety of assets, such as loyalty points, digital coins, in-game items, and more. An ERC-20 smart contract is a set of rules that tokens must adhere to in order to be compatible with the Ethereum network. These rules ensure that all tokens are interoperable and can be exchanged between different wallets, applications, and exchanges.

What is an Initial Coin Offering (ICO)?

An Initial Coin Offering (ICO) is a type of crowdfunding or a way for a company to raise money by selling its own cryptocurrency tokens for fiat currency or other cryptocurrencies. An ICO is typically used to fund the development of a new blockchain-based project, and the tokens that are issued are tradable on cryptocurrency exchanges.

How do Initial Coin Offering Scams Work?

Initial Coin Offering (ICO) scams work by targeting unsuspecting investors who are eager to get in on the ground floor of a potentially profitable venture. The scammers typically create a website and/or social media accounts with a convincing story about their ICO. They then entice investors with promises of high returns, while obscuring the risks involved. Once an investor has placed funds into the ICO, the scammers disappear, leaving investors empty-handed. In some cases, ICOs may be set up to simply collect funds from investors and never actually deliver any goods or services. In other cases, the ICO may be an elaborate hoax."Initial coin offerings", which were originally restricted to pre-sales of cryptocurrencies, have been increasingly used by fraudsters to lure investors as well as raise money.

The Financial Industry Regulatory Authority (FINRA) announced in October 2017 that it would begin alerting investors about ICO scams, which has led to a decrease in the number of ICOs being conducted. The United States Securities and Exchange Commission (SEC) has issued warnings against certain types of ICOs and their associated investments. Examples are initial coin offerings that promise unrealistic returns or investments made with funds raised from unregistered securities sales.

How can one detect Initial Coin Offering Frauds?

• Research the team behind the ICO: Look into the backgrounds of the team members and assess their experience with blockchain technology.
• Research the whitepaper: Read through the whitepaper carefully and make sure it is clear, concise, and realistic in its goals.
• Check for red flags: Watch out for any signs of potential scams such as exaggerated claims, unrealistic promise of returns, and lack of transparency.
• Investigate the project’s tokenomics: Analyze the tokenomics of the ICO to make sure that it is reasonable for a company to spend X amount of funds on the project.
• Check if there is a working prototype: Watch out for any signs of potential scams such as exaggerated claims, unrealistic promise of returns, and lack of transparency.
• Look for red flags and be careful: Be careful about investing in an ICO that does not have information about its team or project, or has very few details available on their website or whitepaper.

Pacific Tycoon or Developer Leroche: A Container Leasing Scam.

Over the last twenty years, countless scams have been reported, from deceptive foreign exchange schemes to binary options frauds and even romance scams. However, Pacific Tycoon (Devenport Leroche) was responsible for one of the largest scams in history - the notorious shipping container scam. Unfortunately, many people were conned out of their money through this devious financial crime.

What is the Pacific Tycoon Scam or container leasing scam?

Pacific Tycoon proclaimed that they offer container leasing services, where people can purchase a container for around $4,000 and then lease it out for returns of up to 12-30% annually, Furthermore, the containers are covered under warranty and can be sold after a given period.

On the surface, the scheme is a Ponzi Scheme, offering unusually high returns with very low risk, the promised return on investment appears to be too good to be true. Furthermore, they claim their operations are based in Hong Kong and China; however, numerous reports have arisen indicating payments were made to overseas locations of questionable legitimacy, besides Hong Kong.

How Pacific Tycoon Scam was carried out: 

Pacific Tycoon has been persuading investors to buy shipping containers from them, following which the organization would then lease the purchased containers on behalf of those same clients. Pacific Tycoon promotes a lucrative investment scheme where customers are guaranteed a return of up to 30% if they lease out their shipping containers. This mutually beneficial agreement has attracted many investors to the company.

Pacific Tycoon and Devenport Leroche would advertise heavily online to entice potential investors who are already wary about investing in this type of company. After the initial purchase of the container, investors would be contacted by scammers to enter into contracts with them. The contracts would state that the investors has bought an "inventory" which allows them to rent out their containers multiple times each year. In reality, these "inventory" documents are not official documents but instead fake contracts.

Once an investors enters into the contract, the company pays out money every month or quarterly to gain more trust of the investor, so he can be convinced for more investment, once the company understands the investors would not invest more, then the company reduces payouts without any notice.

When investors inquired about their low returns and containers, Pacific Tycoon lied to investors that “The container are stuck in Somalia and are not shipping anymore,” “Your containers are stuck in a war zone,” or “There are no buyers to your container to provide you returns.” 

After a thorough investigation, we found that no containers existed; it had been a planned scam all along. This is how the Pacific Tycoon scam was carried out.

How Can You Detect a Container Leasing Scam?

• Research the company: Before committing to any kind of business transaction, research the company you're dealing with. Check out their website, read customer reviews, and look for any news stories or reports about the company.
• Ask questions: Make sure you understand all the terms and conditions of the lease agreement. Ask questions if something isn't clear or if something seems too good to be true. Ask them for referrals so you can verify that they're legitimate before committing to any business transactions with them.
• Check credentials: Verify that the company is legitimate. Check to make sure they are licensed, bonded, and insured. Ask for references from past clients and contact them to get their opinion on the company.
• Examine the terms: Read the lease agreement in its entirety and ask yourself if it makes sense. Do they offer incentives to renew, such as a discounted price? What are the requirements for returning or selling the containers at the end of your term?

What is Multi-Level Marketing (MLM) and how does it work as a scam?

MLM, or Multi-Level Marketing, is a type of direct selling business model in which a company distributes its products through independent sales representatives who earn commissions on their sales. MLM also involves recruiting other sales representatives to increase the network of salespeople and earn additional commissions from their sales. This can be done through direct mail, radio ads, television ads, and even social media marketing. These companies then use their sales force to sell the product or service to new "distributors" who in turn sell it to others in the company's sales force. Distributors make up a vast majority of MLM workers.

How does multilevel marketing scam work?

Multilevel marketing (MLM) scams work by convincing people to invest in a product or program and then recruit others to do the same. The recruiter collects a commission from each sale or recruit, and the money is then funneled up the chain of command. This type of scam works by creating a false sense of success and encouraging people to invest more money in the hopes of making even more money. The reality is that most participants in MLM schemes make little to no money, while those at the top of the pyramid reap most of the profits.

How to Avoid Multi-level Marketing Scams?

Before you join any MLM, do extensive research on the company to ensure that it is legitimate and has a good track record. Check out the company's website, read reviews from customers and former employees, and talk to people who have worked for the company. Be sure to check with the Better Business Bureau and other online sources to make sure there are no complaints about the company.

We offer a Broad Range of Law Services

An Asset Management company is a company that specializes in investing and managing assets on behalf of investors. These companies provide a wide range of services, such as portfolio management, investment advice, financial planning, and risk management. Asset Management companies are typically paid a fee based on the assets they manage for clients.

How does an asset management scam work?

An asset management scam typically involves an unscrupulous individual or group of individuals who falsely represent themselves as professional asset managers. The scam typically begins with the perpetrators promising high returns on investments. They may then require a large up-front deposit, which is often lost, and can also involve the use of high-pressure sales tactics to convince potential victims to invest. The perpetrators may also offer additional services such as tax avoidance strategies or other financial advice, which are often fraudulent. In some cases, the perpetrators may even provide false documentation to back up their claims. In the end, investors can be left with little or no return on their investment, and may be liable for losses in the form of fraudulent taxes, penalties and interest, Many scams are difficult to prosecute due to the inability of law enforcement agencies to identify who is behind them. As a result, many victims may not realize that they have been scammed until it is too late.

The 2007 tax amnesty program discouraged many from coming forward to report their losses due to fear that they would face prosecution if they had already reported their losses in prior years. This type of scam has since been made more difficult due to the enactment of the Tax Amnesty Act of 2008. The same act makes it an offence to "engage in a scheme to defraud or mislead, or to make a false statement knowing such statement will be relied on." The act defines "scheme" as including any arrangement that involves two or more parties who agree: that goods, services, money or anything else of value may be provided in return for payment; and that one party will provide consideration without providing value. One example is the common scam where real estate agents promise high-end properties for sale. Potential buyers are told that the agent has arranged financing and will arrange everything else through a third party. As a result, the potential buyer is not in control of the transaction and can be led to believe they are actually buying a good or service when no such goods are being provided.

In 2008, Linda Sarsour and her husband engaged in a scheme to defraud by promising real estate investors that they would receive their money in cash after paying an up-front fee for what was purported to be an exclusive "opportunity" to invest with them. They failed to pay off their investors, as promised, leaving investors with losses of millions of dollars.

How can I avoid asset management scams?

The best way to avoid asset management scams is to do your research. Research the company and individual who will be managing your assets and make sure they are reputable and experienced professionals. Also, read any documents or contracts carefully before signing, and be wary of promises of high returns with low risk. Finally, make sure you understand the fees associated with the asset management service, as well as any potential risks involved.

Dating or Romance Scams

Falling victim to a dating or romance scam can be a devastating experience, not just financially but emotionally. With the rise of online dating, it’s become easier than ever for scammers to prey on unsuspecting victims in search of love and companionship. So how do you protect yourself from being taken advantage of by con artists or cybercriminals? The answer is simple: stay informed and take proactive steps to protect your online identity and security. In this article, we discuss the warning signs of a dating or romance scam and provide tips on avoiding them altogether.

What are Dating and Romance Scams?

Dating or romance scams are online frauds in which scammers pose as potential dates or partners and trick victims into sending them money. The scammer often creates a fake profile on a dating site or social media platform, using photos and personal information stolen from other people. They contact their targets through social media platforms, pretending to be interested in a romantic relationship.

Once the scammer has gained their victim’s trust, they will ask for money – often claiming to need it for medical expenses, travel costs, or other emergencies. They may also request intimate or sexually explicit photos or videos; after getting them, they will demand payment for not sharing them with others. If the victim refuses to send money, the scammer may threaten to share them with the victim’s friends and family or post them online.

Dating and romance scams can have serious financial and emotional consequences for victims. Scammers are often based overseas, which makes it difficult for victims to get their money back. These scammers mostly portray a story and convince you they work in a crypto trading company and possess inside information to get guaranteed profits. They promise to meet in person or marry once the victim has all the profit. They usually ask the victim to make the payment in cryptos, so it is difficult to track it down.

  If you are thinking about meeting someone online or through social media, take some time to research them first. Don’t give out personal information like your address or date of birth until you’re sure they are who they say they are. Be wary of anyone who asks for money.

 

How to avoid Dating or Romance Scams

Although online dating and romance scams have been around for as long as the internet, they’ve become more prevalent in recent years. With more people looking for love online, it’s only natural that scammers are taking advantage of the opportunity to target their victims.

There are a few things you can do to protect yourself from falling victim to a dating or romance scam. First, be aware of the most common signs of a scammer. These include someone who:

1. Asking for money or financial assistance.
2. Asking you to send them goods or gifts.
3. Requesting personal information and documents.
4. Demanding intimate photos or videos.
5. Asking for video calls that may be recorded and morphed to blackmail.

If you encounter someone who displays any of these red flags, it’s best to move on and avoid that person. You should also be cautious about sharing personal information like your full name, address, or date of birth with someone you’ve met online. Try to verify their identity before sharing any type of information.

What to do if you’ve been scammed?

If, unfortunately, you have been a victim of a dating or romance scam, then firstly, protect your accounts by changing all the passwords that may have been compromised during the scam.