As much as 38 percent of traders who lost funds mostly encountered clone brokers and signal providers, as compared to any other type of scam, a joint survey by Finance Magnates and FXStreet found. A total of 631 traders participated in the survey, sharing their experiences with online scams.

Want to influence the survey results? You can still participate here.

Clones Top When It Comes to Victims Losing Funds

Following the clones of legitimate platforms, investment and Ponzi schemes were next in line to successfully trap victims, as about 35 percent of the traders who lost funds encountered such scams. When it comes to phishing Phishing Phishing is a form of cyber-attack in which fake websites, emails, and text messages are used to elicit personal data. The most common targets in this assault are passwords, private cryptocurrency keys, and credit card details.Phishers disguise themselves as reputable businesses and other types of entities. In certain instances, reputable government organizations or authorities are impersonated in order to collect this data.Because phishing relies on psychological manipulation rather than techno Phishing is a form of cyber-attack in which fake websites, emails, and text messages are used to elicit personal data. The most common targets in this assault are passwords, private cryptocurrency keys, and credit card details.Phishers disguise themselves as reputable businesses and other types of entities. In certain instances, reputable government organizations or authorities are impersonated in order to collect this data.Because phishing relies on psychological manipulation rather than techno Read this Term emails or messages, 19.4 percent of the traders who lost funds encountered such scams, while the figure is 8 percent for fake news.

Clones of legitimate brokers and signal providers are also rampant. Regulators around the world are actively issuing warnings against such clones. Many regulators even cautioned against the impersonation of their official website and officials, as scammers were trying to extort money. Most recently, New Zealand's financial market regulator flagged a crypto exchange clone.

Clones are so rampant that one or the other regulator flag them almost every day. Even brokers individually issued warnings against their impersonators.

Earlier, Finance Magnates reported that many clones of legitimate brokers and signal providers are targeting traders on Telegram. Although companies are trying to take these clones down by reporting them, it's almost impossible to take complete control of them.

On the other hand, Ponzi schemes generally trap investors by promising significant and guaranteed returns and then paying off the old investors with the capital inflow from the new investors. Such schemes were rampant in all asset classes, including cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term. Official records show that Australians reported AU$3.1 billion loss to scams in 2022, out of which AU$1.5 billion was lost to investment scams.

Telegram Is a Hotbed for Fraud

Telegram and WhatsApp were the two forms of social media that topped the number of fraud victims who lost funds as 60 percent of the victims of on these platforms endured financial losses. For Facebook and Instagram, it was 56 percent and 52 percent, respectively.

“Although we have not yet taken direct action against Telegram, we recognize that fake or scam brokerage platforms and clones of regulated entities put investors at risk, and we are taking action in other ways to protect investors," a CySEC representative told Finance Magnates earlier.

“We do this by using sophisticated social media monitoring tools that identify aggressive marketing tactics in real-time and capture suspicious activity. When our investigations lead us to blacklist a fake website, we report the case to the police electronic crime unit.”

Among the respondents of the survey, 17.5 percent of the ones who fell victim to investment and Ponzi schemes did not lose any funds. For clone brokers and signal providers, this figure is at 20.7 percent. Further, 29 percent of the victims of fake news did not lose funds, while 28 percent of the victims of phishing emails or messages avoided losing funds.

Interestingly, the survey found that more traders on Facebook are being targeted by scams when compared to other platforms like Telegram or WhatsApp.