It may come as a surprise to know that the most likely victims of internet scams are young people belonging to the millennial generation. Scams have become more prevalent due to the accessibility and popularity of the internet. I would have thought that older people were more likely to be scammed online due to their lack of computer literacy.
However, in actuality, millennials were found to be more likely to fall for these fraudulent activities. The reason older people are targeted is that they have more money to lose.
Andrei Jikh warns his viewers about a new scam that has gained popularity. This scam presents itself as a reputable and business venture by hiding under the guise of forex trading.
Forex trading is a well-respected and popular form of trading as well as a significant discipline of finance. These scams, however, are in no way related to the financial success that they advertise. Andrei Jikh taught me, and everyone who watched his video, how to spot these scams and what to avoid.
What is Forex Trading?
The term “forex” stands for foreign exchange. The foreign exchange market is the marketplace for all major international currencies. In the Forex market, traders buy and sell different currencies in an attempt to make a profit. These currencies are traded in pairs, with one currency being accepted and the other being sold.
This simultaneous buying and selling is the exchange.
For example, if I purchased EUR/USD, that would mean that I am betting against the USD. It would mean that I believe either the EUR price would increase or the USD price would decrease relative to each other. It is a form of trading that can be very profitable very quickly for informed traders.
The reason forex trading is popular amongst scammers is that it is a market with few rules. Anyone with a connection to a forex broker is granted full access to the forex trading market. Scammers use this facet of the market to rope in unsuspecting victims looking to make some decent money.
How millennials are scammed into Forex Trading
Forex trading is not for everyone, and it should be performed with an appropriate research understanding of the market. Andrei Jikh highlighted some popular scams that seem to target millennials. These scams market themselves on popular social media websites like YouTube, Twitter, Facebook, and Instagram. Because millennials frequent these websites, they are the most likely victims.
The scams themselves have promises or tales of financial freedom and bountiful profits. Usually, they will promote these frauds as easy money without having to do much work.
Millennials fall victim to this trap because of their need for cash or longing for financial freedom. In this age range, they will most likely be relatively recent additions to the workforce. They may see these promises as a way to set themselves up in the future.
How these scams are done
The scammers are innovative in that they place their targeted marketing in calculated positions. For example, they use finance videos and posts as their avenue to lure in victims. A scammer typically posts a comment about how they succeeded using the fraudulent product or service they are pushing.
In the example Andrei Jikh provided, the scammer posted a comment about a “Mr Dean Larsen Wilson”. This Mr Dean Larsen Wilson traded on the commenters’ behalf and earned him a lot of money. Of course, none of this actually happened, and it is all a strategy to get attention.
These scammers use bots or services to create fake YouTube accounts. Scammers will then use these bogus accounts to give the main comment engagement in the form of likes and replies. They will pose as real people having an honest conversation about the fraudulent product or service.
The fake accounts will share their own “positive experiences” and ask further questions until contact information is given. Once a victim contacts these scammers, they are already at risk to lose money.
Why millennials fall for It
The scams themselves get more sophisticated by the day. The fake accounts being used by these scammers look and speak like real people. Furthermore, millennials that are desperate for money are more prone to these scams. Easy money that is practically guaranteed is hard to decline, especially if it looks legitimate.
Many of these scammers will pretend to be affluent individuals or famous people. For example, they may pose as people that got rich performing the scam or fan-favourite content creators and celebrities. A popular tactic of these scammers is to pretend to be the content creator of the video or post that they target.
They then proceed to give “advice” or point them towards the scammer’s product.
How do these scams take money?
Once someone makes the mistake of contacting one of these scam accounts, it is already game over. From there, they can hack into a computer and take valuable information. This information can be an SSN, ID numbers, bank accounts, or even credit cards. Furthermore, they could coerce a victim into giving their data under the guise of assistance.
There are also more subtle forms of scams that get you to purchase a fraudulent product or subscription. For example, I could have been scammed into buying a “get rich with forex trading” subscription that is nothing more than a way to take my money.
Tips to follow to avoid getting scammed
Andrei Jikh forex warns of trusting offers that seem too good to be true. If a person online promotes guaranteed, easy, or free money, it is most likely a scam. He lists some likely cons that I may encounter on the financial side of the internet.
Quick money-making schemes are scams
Many online scams will say that they can provide a way to make money fast and efficiently. But, unfortunately, the only person making money quickly in this transaction is going to be the scammer.
Trial offers lead to subscriptions
A trial period for a service usually means that a hidden subscription is attached to it. Availing of this trial period usually means inputting credit card information. These fees are generally only noticed after it is too late.
Flashy and aggressive marketing points to scams
If a product or service is marketing in a flashy or aggressive manner, it is most likely a scam. They may be offering me guaranteed money, a wealthy lifestyle, or a way to financial freedom if I purchase their service. They may also inform me that there are limited slots or products left.
These are all common scam tactics used on the internet.