Phishing Scam – Another Type of Online Trading Fraud to Avoid
Phishing Scam – Another Type of Online Trading Fraud to Avoid

Trading scams can take many forms. Some involve specifically fake brokerage websites while others employ traditional fraudulent methods such as phishing. Since it’s been around for a while, anonymous crooks are familiar with the basic principles and how a phishing scam is supposed to be executed.

Such schemes can be dangerous and leave you in financial ruin. Therefore, you should learn more about different types of phishing scams. Our article will shed light on how the plot works, how it manifests in trading, and what you should do in case you fall victim to phishing swindlers.

What is Phishing?

The point of a phishing scam is to obtain sensitive information from unwary individuals. Cyber fraudsters aim to collect data such as usernames, passwords, and financial information and use it to steal people’s money. 

As explained by the UK National Cyber Security Centre (NCSC), a phishing attack involves sending fraudulent emails, text messages, or making phone calls to gain access to the aforementioned info. Digital thieves want you to visit a bogus website that is supposed to steal bank account details and similar data.

According to the security agency, the number of reports it received until January 2024 exceeded an alarming 29 million, resulting in more than 168,000 scams being eliminated across over 300,000 URLs.

Common Types of Phishing Scams

Given the basic phishing scam framework, con artists continuously come up with varieties of the scheme. Sometimes there is more than one type in play, increasing the scam’s likelihood of succeeding.

A technique often used in pre-phishing is called spoofing, i.e., disguising an email address, sender name, phone number, or website URL to convince victims they’re interacting with a legitimate entity. 

The US Federal Bureau of Investigation (FBI) provided a concise analysis of how financial swindlers go about executing their schemes. Let’s take a look at some of the most common types of phishing examples and explain how each works.

Fake Emails

Per the FBI report, you may initially receive a phishing email. These deceptive emails are written in such a way as to appear legitimate as if they came from a reliable source like a financial institution. 

Fraudsters often use pushy tactics such as urgent requests for you to verify account information or update payment details. For instance, they might send a PayPal scam email, leading you to fill out fake invoices. By clicking on the bogus links or attachments, you can inadvertently share sensitive info.

Fake Websites

Aside from suspicious attachments, links you receive may lead to a phishing website. Upon clicking on it, you are redirected to a spoofed page that mimics real websites, such as your bank or credit card site. On that page, scammers ask you to enter sensitive information like passwords, credit card info, PINs, etc. 

The purpose of these sites is to steal that info. Virtual crooks may also pose as brokerage firms, so be careful. Don’t share your credentials, and avoid depositing funds on these pages.

SMShing

SMS phishing, also known as SMShing, involves sending duplicitous text messages. Imposters usually type out textual messages that seem to be from reliable sources – it may be your bank or brokerage firm – requiring you to follow a link or make a phone call. 

As in the previous cases, the sole purpose of these text messages is to acquire personal and sensitive info. The scammers are not interested in providing you with any honest services.

How Fake Brokers Use Phishing to Lure You?

Phishing scams are common among fake brokers. The illicit operators use various deceitful tactics to lure unsuspecting traders and investors into their traps. They typically start by sending emails, posing as reputable Forex or cryptocurrency providers. 

The hoax emails contain enticing offers, requests for immediate action, or account security warnings. Moreover, phony brokers make websites that mimic credible trading platforms with URLs that are similar to the originals and nice-looking logos. 

They may also hire agents to run fraudulent marketing campaigns or search for potential victims on social media and messaging apps such as Telegram and WhatsApp.

Bogus websites are designed to collect personal info from users, enabling the scammers to gain access to victims’ accounts or steal their identity. The latter receives some sort of questionable software or dubious web platform, usually rigged to display fake profits. Once they realize what’s up, the money is already gone.

What Can I Do If I Was a Victim of a Phishing Scam?

Phishing schemes operate on a sophisticated level, often deceiving even cautious individuals. Hence, it’s important to educate yourself and be on guard for red flags.

On the other hand, If you believe you’ve fallen victim to a nasty phishing scam, please consider the following steps and take action immediately:

  • Change passwords – Any of your passwords that may have been compromised. Change everything as soon as you suspect fishy activity.
  • Contact the broker – Inform the broker about your suspicions to take appropriate action. If your provider refuses to acknowledge your complaint, you were correct to doubt the business. 
  • Report the phishing scam – File a complaint with the relevant financial market authority, such as the US Security and Exchange Commission (SEC) or the Financial Conduct Authority (FCA). Inform local law enforcement as well. Request aid.
  • Monitor bank account – Carefully watch your bank account to prevent further financial damage. If need be, inform your bank about the incident and request protection of funds.
  • Contact a chargeback company – If your money is truly gone from your account, consider requesting a chargeback. Hire a credible company that handles such cases.

To sum up, phishing scams have existed for some time now. Digital thieves often use phishing methods to lure unwary victims into cyber traps. They may create fake brokerage websites and offer dubious trading platforms.

If you need help retrieving your hard-earned funds, contact Scam Brokers Reviews. Our team deals with fund recovery daily. Book a free consultation and explain what happened so we can find a solution together.

FAQ Section

What’s a phishing scam?

A common type of cyber scheme that involves fraudulent emails, text messages, bogus websites, and fake promises that collect sensitive info from people.

Which phishing scam types are common?

The most common types of phishing fraud involve emails, SMShing, fake websites, and illicit brokerage platforms.

What is a chargeback?

You can request a chargeback at your issuing bank within 120 days to reverse MasterCard and VISA credit/debit card transactions.

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