Online Trading Investment Fraud: The Big Money Dream

The dream of easy money has led to the financial ruin of many investors.

The focus is on suspicious online trading platforms that allegedly advertise their services via the Internet and social media from other European countries.

Online Trading Investment Fraud

Customers are lured into the trap by suspicious investment products and high profit promises made by the con artists.

For the victims of fraud, highly speculative investments usually result in a total financial loss.

It is a pan-European fraud phenomenon, according to Europol assessments.

The total damage caused by fraud and breach of trust in connection with investments in 2018 was more than 285 million euros, according to the Federal Criminal Police Office.


  • Beginners should avoid CFD (Contracts for Difference) and Forex trading.
  • Online trading carries a very high risk of loss.
  • Private investors have been prohibited from trading binary options since 2018.
  • Don’t be fooled by promises of high profits with no risk of losing money.
  • To learn more about the trading platform, click here.
  • Is the trading provider a regulated company or a company based in another EU country?
  • Scam victims should report the incident to the appropriate European supervisory authority, as well as file a criminal complaint with the police.

Warning: fraudsters pretend to be a supervisory authority and riot investors

Recently, fraudsters have pretended to be supervisory authorities, mediators, or lawyers in order to entice investors to return their money by sending fake letters.

But be cautious: there’s a chance you’ll lose even more money.

As a result, investors will be protected from the new scam.

What is Contract for Difference (CFD) trading?

CFD trading is a highly speculative financial product that should only be used by knowledgeable and experienced investors.

CFD trading

Contracts for Difference, or CFDs, refer to trading on rising (long) or falling (short) prices of stocks, indices, commodities, currencies, or interest rate products.

The profit or loss is determined by the difference between the underlying’s entry and exit prices (buy and sell).

Users of CFD trading do not purchase company shares, as is the case with traditional stock and bond purchases, but instead participate in the price movement of a specific underlying asset.

CFDs are thus classified as derivatives, which are among the most complicated investment products available on the financial market.

Stock Chart for Online Trading
Online trading: Learn more about the provider and be wary of promises of high profits with no risk of losing money.

What exactly is forex trading?

The term “Foreign Exchange Market” (short: FX) stands for “Foreign Exchange Market” and is translated as “Foreign Exchange Market.” The forex market is the world’s largest financial market for trading currencies, with a daily trading volume of over $ 6.5 trillion.

Forex trading can be compared to a vacation currency exchange.

The amount of Danish kroner received by a holidaymaker from Germany, for example, is calculated using the current exchange rate.

When the tourist returns from his vacation, he can exchange his Danish kroner for euros once more. He loses money if the rate is lower. He will benefit from the exchange if the exchange rate is higher.

When trading forex and cryptocurrencies, there is a very high risk of losing money. As a result, a certain level of knowledge and experience is required. As a result, novice traders should avoid the investment product.

What are cryptocurrencies and how do they work?

Cryptocurrency is a type of digital currency that can be legally traded and exchanged. Cryptocurrencies, on the other hand, are not regulated by regulators or banks.

Investors speculate on market price movements when trading digital currency. The settlement takes place on the stock exchange or through a CFD trading platform.

This investment opportunity is completely anonymous and pseudonymous, allowing pyramid schemes and other investment fraud models to hide behind it.

What cryptocurrencies are there?

There are other digital payment options besides Bitcoin, the most well-known cryptocurrency:

  • Bitcoin Cash
  • Cardano
  • Litecoin
  • Currency
  • NEO
  • Dash
  • Doge
  • EOS
  • Ethereum

What is binary options trading and how does it work?

Trading binary options online is purely speculative and carries a high risk of loss.

Private investors have been prohibited from trading binary options since 2018.

Investors speculate on whether the price will rise or fall with this investment. As the slogan goes, “Cash or Nothing” (profit or loss). The concept is simple enough for even laypeople to grasp, which is why binary options are so dangerous.

The problem is that the value of binary options is determined not by supply and demand, but by the price set by the provider himself. Customers will have a difficult time understanding or verifying this.

Investment fraud on the Internet: Suspicious trading providers

We’ve been receiving an increasing number of reports of fraud in connection with financial investments made on unlicensed online trading platforms in other EU countries in recent months.

investment fraud

Financial contracts for difference (CFDs), binary options on stocks, indices, commodities, and currencies (forex trading), and cryptocurrencies have become increasingly popular among fraudsters. The rip-off mesh is the same every time.

Typically, the issues begin with the first ostensible profit. In many cases, if you don’t act quickly enough, you will face financial ruin.

Always the same scam: Alleged online broker does not pay out money

It’s the same con every time: Money is not paid out by an alleged online broker.
Customers will be contacted by a “broker” or call center employee as soon as they register on the ostensibly trading platform. The goal is to persuade the investor to make larger and larger long-term investments in order to make the most money possible.

If the consumer has paid in his capital, the first profit developments will be displayed in the customer account after a short time. This should convince the investor of the financial product and make further investments.

What the customer does not realize is that the platform operator can simulate fictitious account movements and winnings using fraudulent software.

There is no trading at all, in fact. The funds are instead transferred to foreign accounts by the fraudsters. For the time being, investors will be unaffected.

If you want your alleged profit paid out in the end, the “brokers” will put you on hold and demand that you pay any taxes or processing fees that have been incurred. The purpose of the delay tactic is to obtain even more money.

At some point, the contact will completely break off. The paid-in capital has been depleted.

Contact the police if you suspect investment fraud.
If you have been a victim of the scam, you should file a criminal complaint with the police.

How can investors tell if an online broker is shady?

At first glance, fraudulent websites are difficult to spot. As a result, potential investors should learn everything they can about the trading provider. Our checklist will show you what to look for and how to protect yourself from con artists.

Identify and protect yourself from fraudulent trading providers with this checklist.

  • Is there a full legal disclaimer on the website? Who is my point of contact? What is the location of the company’s headquarters?
  • Learn more about the trading platform and the service (search engines, forums, online map services).
  • Is the trading provider a regulated broker?
  • Is the company listed in the supervisory authority of the respective EU member state’s company database?
  • Be skeptical of promises of high profits with no risk of losing money.
  • Do not participate in uninvited consultations regarding investment opportunities (telephone advertising, e-mails).
  • Using remote maintenance software, do not give anyone access to your end devices.
  • Don’t send copies of your identification documents to avoid identity theft. With these meshes, the request to do so is very common.

Get free help now

Do you have a question about your consumer rights or want to file a complaint against a business in another EU country, Iceland, Norway, or the United Kingdom? Then get in touch with us right away.