Trading fraud is currently on the rise with many criminals seeing it as a lucrative money making scheme. Trading bot scams are just one of the ways being utilised for these fraudulent tactics, as it’s an easy way to steal money from new investors. Whether there’s a whole team that runs a trading bot operation or rookies with poor coding, these trading bot scams are seen more than you think and can lead to serious money loss complications.
It can be difficult to be successful with trading, especially cryptocurrency, even for the most experienced of traders. Therefore, it’s a common occurrence for traders, both stock and crypto, to opt for an algorithm friendly programme to help seize every market opportunity possible. However, it’s a very risky way to try to take advantage of the crypto market due to how efficient trading bot scams can be.
To find out more about these trading bot scams, we will explore the types of trading bots, how they work and the ways you can spot a scam.
The Types Of Trading Bot Scams
There are both fully-automated and semi-automated trading bots that can be utilised by criminals to scam traders. The fully-automated bots can execute trades at any time, whereas semi-automated bots are more limited and controlled. They require traders to manually authorise certain actions, which makes them safer from trading bot scams.
Galileo FX trading bot
This automated trading software operates within trading platforms, such as MetaTrader. It will use algorithms and predetermined criteria to execute trades. The Galileo FX trading bot has proven itself to be legitimate and one of the industry leaders in automated trading. While this is the case, there is always a chance that something could go wrong but this isn’t necessarily a trading bot scam.
Quantum AI trading bot
This trading software is specifically designed to provide quality support to traders so that they can successfully navigate the trading market. The system is completely AI-driven and uses mathematical algorithms to carry out trading activities. There is a mix of information online surrounding the Quantum AI trading bot, but it is considered to be completely legitimate and not a trading bot scam.
How Do Trading Bot Scams Work?
Scammers who operate and run trading bots’ primary focus is to convince individuals to use their platforms for their trades. Usually, the trader will sign up to use the service, pay to use it and begin to trade. A short time later, the platform will disappear without a trace with everyone’s money who signed up. These trading bot scams will aim to get as many users to sign up as possible so that they can walk away with more money.
Typical trading bot scams will offer some sort of incentive for users to sign up. For example, free perks and benefits could be offered to anyone who signs up within a specific time period. Scammers will tend to target markets that are experiencing high growth, which is why cryptocurrency is the most at risk. New traders are entering the market all the time and this leads to trading bot scams taking full advantage.
How To Spot a Trading Bot Scam
There can be several telltale signs that a trading bot is a scam. Bad grammar, lack of reviews and lack of detail about the bot are all ways that you can notice a trading bot scam.
Bad grammar
If you notice any grammatical errors when signing up for a trading bot, it is probably best to stay away and avoid using it. It shows unprofessionalism and a lack of attention to detail that you wouldn’t see with legitimate automated trading bots. High-quality brands will ensure that everything you read on their site is perfect.
On top of this, poor formatting is also a big giveaway of a trading bot scam. For example, you should stay away from the service if the layout doesn’t adapt to your browser window size.
Lack of reviews
If any product or service has little to no online reviews about it, the likelihood is that something foul is at play. Any legitimate service will have plenty of online reviews, so if the reviews section is lacking then it is probably best to avoid.
Lack of detail
Another way you can spot a trading bot scam is if there is a lack of details online about the technology behind the service. For example, the Galileo FX and Quantum AI trading bots will both have a lot of information online to prove their legitimacy. If you can’t find much information about a trading bot, it is likely a scam.
It’s crucial as a trader that you remain vigilant when considering using a trading bot and make sure that you find out as much information as possible before signing up for a service. Trading bot scams will continue to suffocate the trading industry if users are not able to tell the difference between them and legitimate automated software.
Get in touch with our experienced team at WRS if you feel as though you have been a victim of a trading bot scam, or have any questions about other trading scams.
