Trading · May 8, 2021

What are the Main Financial Frauds?

Here, we bring together the main frauds that have already happened – and still do – all over the world.


Simply, it is one of the most well-known and scandalous modalities in the financial universe. After several problems, the pyramid schemes tried to reinvent themselves under the name of Multilevel Marketing – as if the idea of a few levels at the top and many below was not, in itself, the design of a pyramid.

What are the Main Financial Frauds?

What this scheme does is to draw people’s attention to the sale of products. However, after participating – using your money to purchase the products – you must recruit new people to do the same under you, earning commission on the sale of all your inferiors.

The problem with the pyramid is its mathematical unsustainability – the later one enters, the more difficult it is to recruit people who recruit people who recruit people (etc.) so that their base grows.

Forex Market

Basically, some platforms take advantage of technology and headquarters for immediate returns to turn these operations into something as random and non-technical as a casino.

Well, first, one must understand the issue of binary options. In the software, you put money into your account and then use it to trade indices, currencies, commodities and the like. Your goal is to bet on whether the asset price goes up or down in the next 60 seconds.

If your bet is right, you roll back the money with a 10-fold leverage. If you get it wrong, you lose the “invested” money. Although it is possible for companies to structure real binary options platforms, it is worth noting that this is far from a traditional investment, based on a technical decision and committed to money. Literally, this business seems more like a gamble.

In most cases, Forex companies have made a bad name for themselves as fraudulent companies that created some forex trading scams. In other words, the investor is given the impression that he wins some, but he loses many others, so that the house always wins – just like the casinos.

Fake investment professionals

It is the biggest disappointment in the financial universe. See, just a fraudulent doctor can put your health at risk, a false investment agent can sink your financial life, disappearing with all your money and not leaving any chance to get money back.

Therefore, it is very important to be calm when selecting the professional with whom to build your investment portfolio.