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Posted on Jul 30, 2021 in Blog, Business, People | 0 comments

How to avoid online exchange scams

How to avoid online exchange scams

Online exchanges are an excellent way to trade in exotic currencies and turn a profit. And, they are becoming even more popular with the rise of online platforms. However, new traders with a lack of expertise are prone to fall to online exchange scams.

Inexperienced investors invest money in deals that are too good to be true. Their excitement lasts until they are unable to check their account and withdraw money. Of course, there are online exchanges that are a legitimate way to trade and earn money. You have to know how to recognize them.

An Online Exchange with a Proven Track Record

The easiest way to recognize a legitimate online exchange is to look for an online exchange with a proven track record like US First Exchange. There are several ways to track the legitimacy of the business, from online reviews to calling their company number. An online exchange is a business like any other, so look for the usual signs of online scams.

Look at Their Web Copy

The easiest way to find a scam exchange is to look at their web copy. You can tell that a business is not professional if a company website has poor writing and grammar. No business located in the US, UK, or Europe would use poor writing for their website.

Even if you look at websites worldwide, they always present themselves properly. That means that your website needs a polished English version for Anglo-American users. Spelling mistakes, lack of idioms, and poor punctuations are the tell-tale sign of a scam website.

Check Their Business Address and Landline Number

Now, maybe they hired a poor copywriter to make the content on their website look presentable. However, they can’t hire a poor business address and landline number. Every business needs a physical address so customers can get in touch with them. Also, you can phone them and see who answers. The employees will answer if the exchange isn’t a scam.

Chances are slim that there would be no one around to answer your question and encourage you to do business with them. Be aware that some scammers take extra steps to cover the scam. They may answer the phone and sound professional even when they are scamming you.

Read Their Privacy Policy

That is why you want to read their privacy policy. A privacy policy may tell you a few things about an exchange to help you determine its legitimacy.

Usually, the privacy policy confirms the registered business address and company name. That allows you to investigate further. Also, the privacy policy helps you estimate the exchange’s ethical stance. But, you can copy a privacy policy from another site. It’s better to stick to hard evidence when debunking online scams.

Find a Company Number

Often, you can find a company number along with an address in the privacy policy. The difference between a landline number and a company number is that the company number is valid for the company. A landline number may not be the number of the company but of the address where the company is.

Company numbers should be displayed in the website footer, on social media, and in the privacy policy. Sometimes, there are even extensions for Viber and WhatsApp to help you reach customer support or company officials. Never deposit money into an online exchange when you are unable to speak with the employees.

Look for Reviews

Another way to discern whether you are dealing with an online exchange scam is to read reviews. Reading reviews helps you learn from the experience of other customers. There are clear red flags that tell you right away that an online exchange is a scam.

For example, too many positive, short, and repetitive reviews are a clear sign of a scam. Users tend to focus on the user experience, particularly for their situation. Paid or fake reviews aim to create a super-positive image for the exchange. Another sign of a scam is when you see too many positive and too many negative reviews get posted all at once.

Look for Them in Official Registers

Up until now, these were simple and somewhat amateurish ways to check an online scam. These methods require more work but give you a clear answer on the legality of the online exchange.

If a business is legal, it needs to be in some registry. Countries often have these business registries where you can check all the necessary information. Once you have a phone number or an address, you can run that in the registry database to confirm that business exists.

Most of the time, an online exchange that isn’t in any registry is a scam. Regardless of cultural differences, all countries have registries to help you verify companies and do legal business. Unfortunately, not all countries have their registers available in English, so you may be out of luck if you wish to check a foreign online exchange in the register of their country of origin.

Verify Their Company

There are levels when it comes to scams. Some online scams are easy to see through, while others have a complex facade. So, it’s time to verify their company. For company verification, you need information such as an address, company number, and shareholder information.

Once you gather the info, you test it in the registries and see if it matches the official registries.
As an additional step, you want to pay attention to the employees of the online exchange.

Search for Their Staff Online

Searching for their staff is the fastest way to test the legitimacy of any business. When you look at top exchanges, you can trace the owners and staff on LinkedIn and other relevant networks. It’s almost impossible to operate an online exchange without help from financial advisors, web developers, and marketers.

Also, it’s near impossible that none of the employees use LinkedIn and lack a digital footprint. Thus, it is highly unusual that an online exchange hides its director or CEO. If all else fails, there is another way to test the legality of an online exchange.

Verify the Company Credit Score

Look at their business credit score. Get a company address and other information so you can find their credit report. A credit report reveals a credit score that you use to determine whether a company is stable.

The credit score goes from 0-100, and the higher the score, the more stable the company in question is. Reading the credit score report gives you a direct glance at how well the company operates. A low credit score is the measure of malpractice and a failing business. With all this information, you can debunk any online scam, whether it’s an online exchange or any other.

Avoid Scams

Avoiding scams is all about being careful with your money. Always do your research to protect your wealth and investments. While checking for scams takes time, it’s worth the effort. There is nothing worse than investing your money only to lose it to scammers. Do your research in the age where all information is a Google search away.

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