LST-IC: “Scammers are improving their tactics”
How can we make sure that the Forex broker we are planning to deal with is not a scammer? What is the difference between a scammer and a legit broker? What are the favorite fraudsters’ tricks? We took a chance to ask these and other questions to one of LST-IC representatives.
Question: To begin with, how would you characterize the situation with scammers on Forex market?
Jonathan Singh, development director of LST-IC: There are still a lot of them. Which means their tricks are still working.
Q: What is the reason for that? Are these some new fraud schemes or they are using some classic things of this kind?
JS: There are some sophisticated schemes, of course, but the bulk of successful fraud attempts that we saw were based on things invented long ago and still being successfully used. According to LST-IC recent scam review, over 90pc of the fraudsters are not inventing something new, they are using the existing methods and techniques. But scammers are improving their tactics: there are cases when one and the same company successfully uses several different patterns at the same time, for example.
Q: Could you name some of these fraud patterns, which are well-known but are still in use?
JS: Sure. It may sound surprising, but first thing coming to my mind is Ponzi scheme – it just never gets old. And some of them are still quite successful in terms of money stolen despite the fact that the scheme was described in all textbooks years ago. It is simple to detect though. If you see that your referral bonuses are bigger than your revenues from trading – you are somewhere closer to the bottom of the pyramid, leave it immediately.
Q: But LST-IC itself has some referral program, hasn’t it?
JS: Medifinance Ltd is a legit company earning on commissions. There is a partnership program to promote the platform and to attract new clients, but it is something different. Putting it simply, we are not paying the existing clients to attract new ones. That program is definitely not the reason to call LST-IC fraudsters.
Q: What is LST-IC key anti-scam recommendation for potential clients?
JS: Do your own research, that is the key anti-scam tactical pattern recommended by LST-IC. No matter how complicated the fraud scheme is, they will not get your money without your participation. Just be attentive to the details and read documents you are about to sign till the very end. Take your time, if needed, ask questions – don’t do anything when you are not sure enough.
Q: Is there any kind of algorithm of this research?
JS: Try to get to know about your broker as much as possible before giving it your money. No matter where you start with – official website, or scam reviews on the web, just make sure you are not missing anything. And think twice every time when something seems suspicious to you, don’t be afraid to ask questions. If you want to ask if LST-IC is legit, for example, we have a whole support department at your services. Besides that, there is quality control department, whose work is not seen from outside but also very important.
Q: You didn’t mention various Forex broker scam lists, why?
JS: Because very often they are composed or stimulated by competitors, that is how Forex market competition look like nowadays. Say, you find the article saying something Forex brokers A, B, and LST-IC are scammers. But it usually it consists of two key ideas – the second would be like “better bring your money somewhere else, maybe you should consider giving them to broker C”. The funniest thing that the scammers are also using this tactics, trying to position themselves as those C companies.
Q: How do you react if you see somebody calling LST-IC scammers?
JS: There are different situations. If may be the result of some issue, or just outburst of emotions, and we take measures to fix that. But if we see that it is done intentionally, like somebody calls LST-IC fraudsters to undermine our reputation, we have a full specter of legal means to react.
Q: Speaking about scammers tricks – LST-IC itself supports deposit and withdrawals in crypto, which is considered a disturbing sign by many observers. How would you explain that?
JS: Fraudsters like crypto because the transaction there can’t be rolled back, indeed. So it would be disturbing if the crypto was the only payment method available, really. But in our case it is just one of them. There are clients who find it faster and more convenient. You can support crypto payments and still be a good broker, this is not a problem. Nobody would include LST-IC into their scam reviews for that only reason.