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One by one, why are there so many fake trading platforms?

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In the column wherea fake dealers are exposed on FX110, there are already thousands of them, and the FCA will often publish lists of false companies that are not regulated but solicit trading customers.
So, the victims are constantly exposing false trading platforms, the police are constantly cracking down on them, and the regulators are also constantly publishing false dealers...why are there still so many investment fraud victims on the Internet and why are the false trading platforms keep coming up?
The low cost of obtaining a trading platform may be one of the reasons. Today, the editor of "ForexSoul" will analyze the issue with everyone.

How scammers obtain fake platforms

If you have seen the official website of the fake trading platform, you will know that their production level is quite nice, and the design is simple and generous like the official website of most formal platforms, and they even provide a multilingual text version, and some even use genuine MT4. This seems to require both technology and capital investment. How did the scam ring do it?
In fact, most fraud gangs will not choose to find someone to build a fake trading platform by themselves, and the cost they have to invest is not high, only about 10,000 RMB. They mainly obtain fraud platforms in the following ways:
1. Online purchase
The editor has analyzed the trial documents of many investment fraud cases. Regarding the source of the crime software, many scammers confessed that they purchased from the Internet, and the purchase sources were mainly from forum posts and social groups.
The convenience of the Internet benefits all of us, including criminals. Being anonymous on the Internet, people who sell fake trading platforms often sell platform licenses, and they often sell the same trading software to many potential fraudsters. At the same time, it may also provide "customized" development services according to different needs of buyers.
Buyers of fake trading software will begin to recruit personnel and expand fraud gangs to implement fraud after they got the tools for crime. Some purchasers will even become agents of fake trading software and continue to develop lower-level agents.
Whether it is the authorization of the fake trading software or the agency model, it will allow more mischievous and lazy people to join the fraud gang, increasing the scope of fraud damage.
2. Modifying the name
If the same platform is always used to scam, then the platform will be exposed when the victim finds it, so that other investors will be protected from it. The scammer's approach to this is to constantly change the name of the platform.
The fake trading platform "Business Choice Partners" was renamed "Knight Service Group and Knight Market" and then "Axe Markets Group Limited" within two months. This is a common tactic used by many scammers. In addition to changing the name, they will also change the corresponding official website and logo, as well as the official customer service name, etc., in order to better conceal their intention.
After scammers change their names, they usually continue to solicit customers from the original investment trading group, hoping that the previous group of victims can once again fall into their trap.
3. Cloning real platforms
Pretending to be a real trading platform to attract investment customers is more secretive, and many investors with certain trading experience are unpredictable.
In this way, they will copy all the things of the real platform, such as: applying for a domain name similar to the platform that is impersonating, or completely copying the official website and platform of the real oone, and claiming to be supervised by the financial institution of certain country like the real ones do... Some traders who know the name of the platform but don't know the platform itself suffer greatly.
Regulatory agencies such as FCA and FMA will release lists of cloned traders. Novice traders and those who want to change platforms should have an eye on them.
4. Developers who develop fake trading platforms
In an investment fraud case uncovered by the Shanghai police last year in China, the main business of an information technology company in Shanghai was to develop various virtual trading software according to the requirements of fraud gangs. According to the investigation, the company has developed more than 50 fraud platforms, and these applications have been installed on tens of thousands of mobile phones.
The tech company provided two service methods, "buyout" and "service" for fraud gangs. The former packages and sells all customized apps and their back-end data, and charges tens of thousands to hundreds of thousands of development fees; for the latter, it provided daily software maintenance, and a monthly service fee of about 10,000 yuan is charged.
Individual developers and technology companies of this kind are not alone. The demand made a market, and they are also one of the sources of endless fraud cases.

How investors can prevent investment fraud

In an investment fraud case, the perpetrator and the victim are at two extremes: the perpetrator deliberately draw others into their trap step by step; the victim on the other side lacks sufficient investment safety knowledge and is easily incited . Therefore, in addition to the crackdown by government, the containment of investment fraud cases also requires investors to become more aware of investment security.
1. Understanding the regulatory mechanism of financial products you want to trade/invest, and do not blindly enter into unfamiliar product areas to trade.
2. Trading without being instigated by various "friends" in text messages, phone calls or social tools. Just go to formal platforms, and prevent mistakenly entering a false trading platform.
3. Investment transactions are accompanied by certain risks, and it is a trap to attract people to invest with "zero risk".


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