The latest fraud is using celebrities from all around the world as bait. Following a significant decline in 2018, Bitcoin is now growing once more, and the current success has many people talking. Online con artists who employ get-rich-quick schemes like Immediate Edge to lure victims into acquiring derivative products based on cryptocurrency are among those who are motivated by the current highs.
Their use of phony celebrity endorsements is one of their main strategies. You’ve probably seen advertisements saying that you can make millions like a well-known person who has done so. These con artists are getting more and more brazen, and they are now making bogus endorsements from UK celebrity and blogger Martin Lewis.
Who Is Responsible For Promoting This Scam?
The perpetrators of these phony celebrity endorsements are part of a complex network that directs investors to dubious online investment firms. Depending on how many people they are able to steer to their fraudulent websites, these brokers pay them.
Since they are not registered with any financial regulators and have their base of operations in some offshore haven with ineffective financial regulation, brokers themselves operate almost anonymously.
A complex product with significant risks, contracts for differences, is what brokers most frequently sell. It’s not Bitcoin that you purchase when you purchase them. You are investing in a different asset that is related to the price of Bitcoin and will fluctuate with it.
Scam brokers allow rookie traders to buy with leverage while promising enormous rewards. Realistically, these rewards are called “leverage” which means the slightest price fluctuation can wipe out an entire balance.
Guaranteed Returns?
Martin Lewis and other well-known figures drive traffic to the broker’s website, but it is only the beginning of their sales presentation. They aim to capture as many victims as they can, particularly novice investors.
These brokers guarantee automated trading handled by sophisticated algorithms in an effort to attract newcomers to their platform. They assert that traders won’t require any market expertise to be successful. All of the work will be done by their “robots.” Of course, these assertions make no sense at all. Any business that could create trading algorithms that were impenetrable wouldn’t require false endorsements to attract investors.
Big Names Mean Little Resistance
Martin Lewis is one of the most well-known names these con artists have employed thus far, but he is by no means the only one. Online investment fraud has long been characterized by fake celebrity endorsements. This fraud casts a wide net to catch any potential victim, from famous actors to the UK.
Who Is Responsible For Promoting This Scam?
The perpetrators of these phony celebrity endorsements are part of a complex network that directs investors to dubious online investment firms. Depending on how many people they are able to steer to their fraudulent websites, these brokers pay them. Since they are not registered with any financial regulators and have their base of operations in some offshore haven with ineffective financial regulation, brokers themselves operate almost anonymously.
A complex product with significant risks, contracts for differences, is what brokers most frequently sell. It’s not Bitcoin that you purchase when you purchase them. You are investing in a different asset that is related to the price of Bitcoin and will fluctuate with it.
Scam brokers allow rookie traders to buy with leverage while promising enormous rewards. Realistically, these rewards are called “leverage” which means the slightest price fluctuation can wipe out an entire balance.
Guaranteed Returns?
Martin Lewis and other well-known figures drive traffic to the broker’s website, but it is only the beginning of their sales presentation. They aim to capture as many victims as they can, particularly novice investors.
These brokers guarantee automated trading handled by sophisticated algorithms in an effort to attract newcomers to their platform.
They assert that traders won’t require any market expertise to be successful. All of the work will be done by their “robots.” Of course, these assertions make no sense at all. Any business that could create trading algorithms that were impenetrable wouldn’t require false endorsements to attract investors.
Big Names Mean Little Resistance
Martin Lewis is one of the most well-known names these con artists have employed thus far, but he is by no means the only one. Online investment fraud has long been characterized by fake celebrity endorsements. This fraud casts a wide net to catch any potential victim, from famous actors to UK sports clubs.
Elon Musk, Richard Branson, Daniel Craig, and even Prince Harry have appeared in some of their most outrageously absurd phony endorsements.
We see celebrities doing real endorsements all the time. Brands are prepared to pay celebrities to advertise their product because it works. People are more likely to purchase a product advocated by a celebrity. People fall for bogus endorsements for scam brokers in the same way.
These frauds have claimed numerous victims and are claiming more and more as they become increasingly popular. It’s not the same as a phony celebrity endorsement for a pair of footwear. These folks are losing hundreds of thousands of dollars if not their whole savings.
How To Avoid Scams
You should generally not base your financial decisions on celebrity endorsements, real or fake. However, if you want to invest online, there are a few key things to check for to avoid being a victim.
A simple search for the broker’s name will yield user reviews. If there are a lot of unfavorable reviews, you should avoid it. There is no justification for picking an unregistered broker over one who is. Look for the registration at all times.
Check to see if the company is listed on the website of the financial authority before believing what is stated on their website. Make that the broker’s affiliation with the financial regulator genuinely qualifies them to provide services in your nation. Some of the regulators in existence aren’t any better than having no regulation at all.