Beware of Cyprus Scam Brokers
Cyprus has been in the middle of investment and financial scams for many years, starting with the binary options days on Banc De Binary.
Financial and Investment scams are very common in Cyprus, there are thousands of scam companies and brands and a big percentage of the population would be unemployed if it weren't for financial fraud.
What is the Cypriot Scam Broker Scheme?
The Cypriot scam broker scheme is a fraudulent investment strategy in which scam brokers take a fee from people who are interested in investing in Cyprus. The scam brokers typically advertise through word of mouth or online and promise high rates of return in the form of a percentage of the total amount of money invested. Many of these brokers promise that their investments are “risk-free” with “guaranteed” returns. Scam brokers often claim that the investments were initially made with the intention of adding liquidity to a bank or financial institution that is now in financial difficulty. They also often say that they are Cypriot nationals who are able to move their funds out of the country freely due to banking restrictions and high taxes.
How does the Cyprus scam work?
There are several different ways in which the scam broker scheme works. The scheme may begin with a phone call or an email, or there may be a knock on your door. In any case, a scam broker may approach you, offering investments in a bank in Cyprus that is in financial trouble. The broker may offer you a high rate of return and claim that the investment is risk free. As part of the scheme, the broker will ask you to send money to a third party who will invest the funds in the bank. In exchange for the transfer, you will receive a percentage of the investment as a return. The scam broker will often request that funds be sent via wire transfer or other electronic payment methods rather than a check or money order. The scam broker may also ask you or an associate to serve as a “straw man,” or a person who is standing in for someone who is trying to conceal their identity.
How to detect a scam broker
When you are approached by a scam broker, be wary. There are a number of factors that can help you spot a scam. If someone knocks on your door and says that you have to invest right away, that is a red flag. If someone calls you and says that you have to invest right away, that is another red flag. If someone asks you to wire money to someone or if you are asked to accept a wire transfer, that is a red flag. If you are asked to sign a contract or a promissory note, watch out. If you are asked to make a payment before you get the return on the investment, that is a red flag.
Why You Should be Careful When Selecting a Financial Service Provider
Financial service providers have different levels of expertise and financial strength. Some have more experience than others, and some have more money in reserve to cover potential losses than others. Before you sign up for a financial service, make sure you know as much as possible about the company, including its financial condition. To use a money transfer company, for example, you should know how safe the company’s money transfer system is, what types of identification are required, and what happens if there is a problem. You should also know the company’s complaint record and whether it has the correct state or federal licenses to provide the service.
Final Words: Be Vigilant and Don’t Be Victimized
In general, when an investment sounds too good to be true, it doesn’t make sense to invest in it. The same is true for investments that are pitched to you under difficult economic conditions and during periods of financial instability. If you are contacted by a scam broker, tell them to go away. If someone approaches you, be careful about how you respond. If you get an unsolicited phone call or email, and you’re not sure whether it’s a scam, you can report it to the FBI’s Internet Crime Complaint Center at www.ic3.gov. If you’re approached by a scam broker you can report it to us at: report@cyprus-insider.com