The Signs Before a Ponzi Scheme Run Away

Forex trading is both a profitable and risky business. Many people choose the platform depending on whether it can help traders make more money. Investors are addicted to the platforms that offer high profits. However, they always ignore the risk beneath the surface. Many scam brokers take advantage of their victims' greed to steal their money. In this article, we will depict some signs that many Ponzi schemes usually have before they abscond with the money, which can help you distinguish the Ponzi scheme from others. and keep you from falling for the scam in the first place.

About Ponzi Scheme

A Ponzi Scheme is a pyramid scheme fraud, which is extremely concealment, and deceptive. If one broker is believed to get involved in a Ponzi Scheme, the agent of the broker will be very likely to keep asking clients to develop downlines. It is a financial investment scam where the money gathered from the new investors is paid to the existing investors. The scammers also can pay their new investors with deposits from early investors. Therefore, many investors didn't know the truth at the time, and they felt reassured and decided to invest more. Many investors will eventually lose money after depositing the money since they can no longer find these fraudsters.

The Ponzi Scheme collapsing is inevitable. As long as no more new victims is joining in to retain the funds operations, the scam will collapse very quickly.

There are a lot of Ponzi Schemes in the forex world, brokers like Omega Pro, FVP Trade we exposed very often before are typical examples.

The signs before a Ponzi Scheme abscond with the money

Everything, before it happens, will show some signs—more or less. You can predict what is going to happen next based on these signs. The same applies to the Ponzi scheme. We can justify whether a Ponzi scheme is going away or not based on some signs it shows.

1. The system collapses very often.

A Ponzi Schemes system collapses very often. Scammers usually use various excuses to calm investors. For example, many people complained that their back offices collapsed when they trade with Omega Pro, which causes losses to those investors. Omega Pro claimed that the server was under maintenance. And Omega Pro used the same excuse twice for the same situation.

2. The platform launches various special offers and held various marketing activities very often.

A Ponzi Scheme likes to hold a lot of attractive events to convince traders to invest in them. They create an atmosphere of luxury and pomp to gain the trust of investors. The goal is to defraud more money in a short time. On July 21, 2021, WikiFX released a new article about FVP Trade taking part actively in the iFX EXPO Asia 2022 to boost its reputation for marketing purposes. We think that FVP Trade tries to make use of this event to scam more victims. After we expose the FVP Trade Scam to the public. The exhibition has removed FVP Trade from its list of sponsors.

(Before July 21)

(After July 21)

3. Cannot withdraw

Withdrawal rejection is the main problem that all scam brokers have. The reason a Ponzi Scheme exists is to take victims‘ money away fraudulently. Scam brokers use a lot of excuses to block traders’ withdrawal requests. Some of these brokers even ask for more extra money from the victims. When you realize the broker uses a lot of excuses to delay or block your withdrawal, you should consider it may be a Ponzi Scheme.

4. Rumors about its collapse spread everywhere.

Before the scammers abscond with the money, you can always find a lot of information about its collapse on social media platforms. Be alert.

5. Low score on WikiFX

You can open WikiFX to check the information about the broker you are curious about. WikiFX will give it a low score and mark it as “a Ponzi Scheme” if it is a Ponzi Scheme. So that you can avoid the scam from the very beginning. WikiFX gives brokers a score from 0 to 10. The higher the score, the more reliable the broker is. For example, WikiFX gives Omega Pro and FVP Trade a low score of 1.19 and 1.80, respectively.

Conclusion

WikiFX reminds you that always be vigilant when you choose a broker. Called the police if you get scammed by a Ponzi Scheme. You can also report to WikiFX. WikiFX keeps track of developments, providing instant updates on individual traders and helping investors avoid unscrupulous brokers. If you want to know whether a broker is safe or not, be sure to open WikiFXs official website (https://www.WikiFX.com/en) or download the WikiFX APP through this link (https://www.wikifx.com/en/download.html) to evaluate the safety and reliability of this broker!