Winning the Fight Against Online CFD Scams
It took a long time -- too long -- but binary options finally has a bad name. Some unfortunate people are still not convinced, so the market isn’t totally dead, but the scammers behind the innumerable binary options frauds that flooded the internet from around 2010 until early 2018 have sensed the changing tide and have started to close up shop.
What they’re actually doing is repurposing their scammy platforms and marketing them as other, ostensibly legitimate, investing strategies. One of the most popular is CFD.
What is CFD? It’s short for “contract for difference.” In this trading model, an investor (buyer) makes an agreement with the broker (seller) that one will pay the other the difference between the value of some asset right now (gold, stocks, currency, or almost anything else that can be traded) and its value at a predetermined future time (the contract time). If the value of the asset goes up, the seller pays the buyer, and if it goes down, the buyer pays the seller.
For example, let’s say the contract were for $100 worth of gold with the contract set to expire 24 hours later. If the value of the gold the next day were $105, the seller would owe the buyer his investment back plus $5. An important difference between CFD and regular stock trading is that no ownership of the asset ever takes place. The investor is essentially just betting on the direction that the value will go. This is similar enough to the bad old binary options that switching over the old flashy binary platforms into new flashy CFD ones was child’s play. The scammers are back in business.
If anything, the new CFD scam is even more dangerous than binary options. With binary, the most you could lose on a trade was everything you put into it. But in a volatile market, by agreeing to pay the difference, whatever it is, the investor risks losing much more than his investment, leaving him deep in debt.
But that’s assuming the CFD merchant is a registered broker in some respectable jurisdiction. In the case of the scammers, they are typically not registered anywhere, are not located anywhere you can reliably find them and are not trading anything at all. They’re just stealing the money you invest the minute you deposit it. You know, just like a criminal.
Eventually, of course, the victim wises up, but only after a lot of money is gone. And where is the purported broker to be found? Good luck bringing them to justice, if you can even find them.
But what about the money? Don’t you at least deserve to get it back? If you are the victim of a CFD scam and paid the criminal by credit card or wire transfer, it may be possible. Unfortunately, the process of opening and winning a dispute in cases like this is weighed down with an unbelievable amount bureaucratic red tape. Fortunately, you have someone to help you.
We at MyChargeBack have the experience and expertise to guide a dispute to maximize the chances of success. And we have the tenacity to never get discouraged or give up on our clients. We guarantee 100% effort to get you your money back. We’re an international fund recovery service headquartered in New York that has retrieved millions of dollars for scam victims the world over.
If you believe you have been the victim of a CFD scam, contact MyChargeBack today to receive a free consultation.
