Nowadays, when trading is your business, you need the best hardware and software to support your daily activity. But you also need some key high-end services, such as a great broker and great research providers, to keep your business running smoothly.
Unfortunately, scammers are eager to target your trading business with fraudulent services or empty promises of delivery. The unwary can easily fall victim to their various schemes, putting their trading businesses at risk.
Here are some online scams that can adversely affect the day-to-day operations of your trading business.
Bogus Managed Services
Hardware and software management and maintenance require knowledge and time. Many trading businesses outsource their IT support to managed service providers (MSPs).
The problem is that it’s difficult to measure the competence of an MSP before using them. So you might be tempted to sign up for one of these (mostly newer) managed services who promisew to take care of your trading laptops and desktops.
However, sometimes these MSPs don’t provide any service. They charge you a monthly fee for doing basically nothing.
You realize that your applications are not getting updated or your hardware is about to crash only when it is too late. Your business can come to a standstill as hardware and software problems start to pile up.
If you decide to hire an MSP, make sure you have checked and cross-referenced their credentials. Don’t fall for industry jargon on a website. Get recommendations from other traders for reliable service providers.
Fake Information Flow
As a trader, you are always looking for information about your next opportunity. If you’re like most traders, you’re using online research to spot your next investment.
The problem is, while you are looking for information online, various websites and social media platforms are collecting information about you. Scammers can use that information to manipulate you with digital advertisements and social media.
This means you could start seeing trend claims and report offers about certain companies and investments that might not be accurate. The scammers are targeting you using cookies on your trading computer and monitoring your browsing behavior.
The fake information flow might be subtle. So it’s important to be vigilant about how you use your desktop or laptop while trading.
When you are browsing, branch out from a Google-only approach and use various search engines to compare information. Try search engines like DuckDuckGo that provides better privacy. Compare your data with offline sources for verification.
This strategy will help you avoid online trading scams like Ponzi schemes or pump and dump schemes.
Dishonest brokers can create situations where it’s difficult to get your money out of an account. When you try to contact support for help with a fund withdrawal, you get caught in bureaucratic red tape.
These businesses might not be outright frauds. They will return your money eventually. But it may take an unreasonably long time to get your money out.
This can put pressure on your trading business. If you can’t get access to funds you need immediately, you could face dire consequences.
Before you invest with any broker, make sure you have a good understanding of their account management processes. It’s not possible to learn everything from documents. So try to use brokers and businesses that trusted acquaintances have recommended.
Even though trading in general is highly regulated, scam artists and unscrupulous business people have found ways to cheat you out of your hard-earned cash. As always, the more you know, and the more vigilant you are, the safer you and your trading business will be.
There are more trading computer tips like this in our buyers guide. Check out our “How To Buy a Trading Computer” e-book.
We hope today’s Quick Tip helped you. If you found this helpful, you’ll want to check out the other computer How-To’s I’ve created on this page. You can always call us if you have questions: 800-387-5250.
Photo by Icons8 team on Unsplash.