Today, fintech scams are becoming more common, and it's not enough to rely on industry to solve the problem。As an award-winning broker, OctaFX has useful insights to deal with this situation。

Fintech solutions seem to be very popular these days, especially since the outbreak。According to a report by Market Data Forecast, the global fintech market is expected to grow, reaching a market capitalization of $324 billion by 2026, with a CAGR of about 25 in 2022-2027..18%。Many people also believe that fintech is beginning to replace traditional financial services in various industries such as payments, banking, and social commerce, so it is expected that the global fintech market demand will increase in the future.。

Unfortunately, such a rapid expansion of the fintech industry has not always come unscathed, with fraud and scams becoming more prevalent in the fintech market, exposing new vulnerabilities for fintech users and developers.。In fact, between 2020 and 2021, payment scams in fintech products increased by 70%, the digital wallet sector grew by 200%, and cryptocurrency exchanges grew by 140%.。

Obviously, the fintech industry needs to take stronger security measures as soon as possible, however, waiting for the industry to solve the fintech scam problem may take some time, in the meantime, it is better to know how to identify fintech scams and protect yourself。As an award-winning broker, OctaFX has some unique insights into this particular issue。

3 Common Fintech Scams

There are many types of scams on the market, but the following 3 are the most common, and you should focus on them:

1.phishing

Phishing is a scam that usually attacks via email, which may appear to be from a legitimate company such as a bank, broker or payment service provider, with the goal of stealing your personal information, such as bank card details。It may even require you to install some malware on your computer that subsequently damages your device and demands ransom money to unlock the system or recover files。

The following is an example of a typical phishing attack:

2.Shanzhai Edition

OctaFX reminds traders that another attack you should be aware of is called "copycat."。As the name suggests, cottage refers to networks that clone actual brokers or other fintech services。Today, these sites can actually be cloned well, making it harder for users to identify fraud. The difference may be in one letter in the URL, while the rest is almost or exactly the same。If you log on to these sites and make a deposit, your money and bank card details go to criminals。

3.One Day Fraud Company

One day scam companies, such as forex brokers or cryptocurrency exchanges, by attracting new customers and luring them to deposit in the company, the next day disappear and take away all the collected money。Or they may also charge exorbitant transaction fees that can quickly drain your pockets if your deal is unsuccessful。

The good news is that this type of company is usually easy to identify, and such companies usually do not have a long history of providing financial services and have never appeared in any news or media。Finally, it is clear that the scam broker has never been rewarded by a well-known international organization or entity。

How to Avoid Fintech Fraud

If you want to get involved in the fintech industry, it is highly recommended that you take precautions to avoid scams, such as:

• Learn the research yourself: you need to be able to identify the scam before you can avoid it。You can first look for reports that contain information about the company, such as how the platform works, whether the platform is regulated, who the developers are and how many people the company employs, and you can also look at the company's tracking records to see if they are legal。
  Use the Domain Checker extension: This is an important step in identifying the authenticity of a broker's local page。If your domain name is different, it is either a fraudulent website or an illegal use of intellectual property。
  Beware of social media: Most scammers like to nest on social media and cover up their appearance。You only need to follow and interact with the company's official account, usually, a list of the company's social media accounts is displayed on its official website。
  Check carefully before payment: Make sure all your payments are processed through the official website of the broker or the OctaFX personal area on the app, if you are asked to pay through other channels such as personal transfer or communication apps, then you are likely to be cheated。
  Confidential Personal Information: Never share any personal information or allow access to your wallet on the Internet until you know the legality of the requester。Also, use a strong password and activate two-factor authentication (2FA)。
  Beware of suspicious emails: Do not click on any link or download any type of file attached to an email sent from an unknown address。

Conclusion

Fraud and fraud exist in almost any industry, not just fintech。Every year new types of attacks emerge that could trap any internet user from around the globe。While we may not be able to identify each one, remember: "If it's too good to be true, then it's probably not true."。"

In other words, don't be easily fooled by unrealistic high profits or jaw-dropping bonuses with zero fees, be sure to check the legality of the platform before registering。

If you are looking for a reliable broker to facilitate your trading, OctaFX is a great place to start。Since its inception in 2011, the regulated broker is known for providing trusted online trading services in more than 150 countries.。For new traders, OctaFX offers commission-free access to financial markets and a wide range of tradable assets, as well as free educational articles, webinars and more, along with many useful analytics and risk management tools to help you achieve your goals。

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OctaFX is one of the most famous brokers in the world and has won many awards for its very comfortable trading atmosphere and close-to-client service。OctaFX was founded in 2011 and is headquartered in Nicosia Strovolou 47, Kyros Tower。

OctaFX has received authoritative awards including "Best ECN / STP 2019" and "Best Broker in Asia 2019" from FX Daily Info; the Best Broker in Asia 2018 from Global Banking and Finance Review Magazine; and the Best Forex Broker and Best Trading Conditions 2018 from European CEO Magazine.。

For traders in most countries, OctaFX is licensed by Octa Markets Incorporated and registered in Saint Vincent and the Grenadines.。The broker also offers various facilities, such as live chat in Indonesian and WhatsApp support services, and deposits and withdrawals can be made through various local banks.。OctaFX does not charge a commission for every deposit and withdrawal made by a trader。

OctaFX offers different types of accounts that use market execution (STP / ECN) and 0.Floating spread of 2 points。All accounts of the OctaFX broker allow the use of various forex strategies, including scalping, hedging and trading with an EA。

There is also a fixed exchange rate discount when opening a Micro MT4 account.。All deposits made in IDR will be calculated at the exchange rate of US $1 = Rs 10,000 and will be credited to the trader's account balance。In addition, Muslim traders who want to avoid overnight interest can also use a no overnight interest account。

OctaFX trading is also suitable for novice traders。Because OctaFX offers low spreads, from 0.0 points to start floating, the required initial deposit is also very low, only $25。Account currencies are USD and EUR。

OctaFX gives 50% bonus every time a trader makes a deposit。and OctaFX's opening opportunities increase, deposit bonuses can be withdrawn on terms and conditions。

If traders are still confused about calculating profits, the OctaFX platform provides a trading calculator for each account type, where traders simply enter the currency pair being traded, the amount of leverage, the number of lots, and the type of currency used in the account。

With the Autochartist function, the opportunity to make a profit is also increasing。Traders are quickly notified when a trade shows a profit signal。Trend prediction accuracy reached 83%。

Traders do not need to worry about the security of the broker's funds, OctaFX uses segregated accounts and protects personal data and online financial transactions through SSL technology, which is adjusted according to international accounting standards and regulations.。

Another advantage offered by OctaFX is the Trade & Win program。Opening an account with OctaFX will give you the opportunity to collect lots, which can be accumulated into a variety of attractive prizes. Traders only need to open a real account on MetaTrader4 or MetaTrader5 through OctaFX to redeem the prizes for this promotion. Prizes include T-shirts, Android smart watches, smartphones and laptops。

OctaFX often has bonuses and other promotions, the broker runs weekly trading competitions on demo accounts and offers real bonuses that can be used for trading。

One of the prize contests is the OctaFX Champion-MT4 Demo Contest, with four winners per period and a total prize of $1,000.。

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OctaFXis an international Forex broker operating worldwide and is part of the Octa Markets Incorporated Group, which is registered with the Saint Vincent and the Grenadines FSA。Currently, the company focuses on the Asian, South African and Australian markets.。OctaFX.com does not accept European customers because the market is dedicated to OctaFX.eu (regulated by CySEC) designated。