Downloading investment software comes with hidden dangers.
International Cybercrime Investigation Agency ICIA is warning the public against various companies that are offering expert advisors or EA’s used in trading Forex, Crypto derivatives and CFDs.
What is an EA?
An expert advisor is software that can tell you when to make a trade and will carry trades out automatically for you based on your settings.
ICIA notes that more companies are coming forward to offer this automated investment service, But a high majority of them have no licensing at all. These companies are not authorised to offer any financial services in most EU countries, and many international jurisdictions.
ICIA has found that these trading software companies are operating as pyramid schemes or Ponzi schemes, In general, otherwise known as MLM, (multi level marketing schemes). Customers are told to bring in more friends and clients to increase their own profits, and to offer special discounts on the price of the software packages.
Social Media Advertising
These Ponzi schemes are appearing on countless social media websites and they are targeting young people and the ill informed who think they have a certain amount of techno know how.
EU countries such as Belgium have emphasised that distribution of these financial instruments and software is prohibited.
Anyone who invests in CFDs, Forex, crypto currency and direct derivatives runs the risk of losing their whole investment, especially on volatile and unstable cryptocurrency.
European investment experts have also labelled these investment schemes as Ponzi and 75 to 90% of them are loss makers. Anyone investing in this type of scheme, must be prepared to lose, as well as gain. In many cases of these Ponzi schemes, no actual transactions or payments were given at all to their clients and customers.
Beware Before You Download
Apps should be downloaded from a reputable source and not from the investment website. Links websites and apps can contain malware to gain access to your passwords and also release ransomware and lock your devices. So always consult an investment professional before downloading and trading online.