The rise of Binary Option (BO) and Robot Trading (RT) cases makes the public have to be vigilant. Know it well so you can avoid it and don't become a victim.
To take action and stop binary options (BO) and Robot Trading (RT) actors from carrying out their activities deserves appreciation. However, what needs to be paid attention to is that the action is taken after the community reports and not the government's initiative. So if there are no victims who have suffered losses and reported, then the perpetrators of fraudulent acts will still be free to carry out their actions.
This lack of supervision and initiative is clearly very dangerous, especially when dealing with financial fraud, especially Ponzi schemes or scams that use MLM / Multi Level Marketing because Ponzi activities will not stop massively and effectively recruit more victims until a point where there are no more new members who are recruited. logged in and failed to pay.
Victims of Ponzi schemes who still smoothly receive the promised unreasonable profits will obviously not report because there is no loss or do not feel cheated. Only when the promised profit sharing begins to falter will the community report it.
The question is, when will profit sharing start to falter?
The answer is: When the reach of this Ponzi scheme has reached its maximum casualty where no new members enter and the Ponzi bubble is ready to burst. So when the impact of harm to the community has occurred and there are victims who report it, the supervisory body can only act.
Legally, the fault lies with the victim who did not carefully check the permit granted by the relevant agency before making an investment. However, it is not fair if the blame lies 100% on the victim.
For example, when opening an account and depositing money in a bank, do you carefully check the bank's permission? The public trusts the bank because it is allowed to run its business by the government and not because it has checked the bank's licensing and financial background. So, here there is the responsibility of the supervisory agency where if the bank does not meet the requirements for carrying out its activities, the bank is immediately closed, prohibited from operating and if it is stubborn, it will directly deal with law enforcement so that the public is safe from the threat of banks operating not according to permits or not fulfilling the requirements to run. activity as a bank.
This is also what regulatory agencies should do for Ponzi schemes, financial MLMs, hidden gambling or binary options. In fact, supervision in this sector should be more stringent and thorough because generally marketing activities for Ponzi activities and the like are carried out covertly and take advantage of existing friendships and social media channels so that they are very effective in communication and dissemination.
What is concerning is that if you look at the victims, the pyramid of income means that most of the victims are not from high income groups, but from the middle or lower middle class who are tempted by instant and routine profits without the need for hard work and depositing money or valuable assets such as retirement savings, cash for the child's schooling in college or pledging assets or the only house shared with the family into this scheme.
Beware of Trading Robots
One of the activities that was stopped by Bappepti and was allegedly a Ponzi scheme was Robot Trading (RT). This RT promises definite profits to its members and some RT managers carry out their activities secretly, some claim to only sell robot programs, but in practice they manage trading transactions and are very active in recruiting new members using the MLM method to deposit funds into the Trading Robot system. promised to provide fixed profits every month.
Actually Trading Robot is software that performs automation in forex trading activities and many are traded openly and legally. But the problem is that the Trading Robot in question dares to guarantee a fixed profit every month. This is something that no professional or experienced trader dares to do and is allegedly using a Ponzi scheme to attract members.
Some indications of a Trading Robot with potential for fraud are as follows:
1. Trading can only be done with certain brokers and not a trusted / bona fide broker and gets certification from a trusted institution.
Participants cannot choose a broker where the hosting broker has been determined by the organizer in such a way with special conditions. According to analysis conducted by experienced traders, the purpose of using this particular broker is because it is possible to manipulate existing trading charts with fictitious trading charts that have been arranged in such a way and adjusted to the promised profit sharing.
When this fictitious trade is compared with the actual market conditions, there is actually a manipulation at the time of the chart to match the market price conditions with profit sharing in order to convince the victims who are not careful to check / do not understand at all and feel safe as long as they receive the promised profit sharing.
2. The spread rate of buying and selling foreign exchange is very far
For example, you open an account and deposit US dollars, you are not allowed to TT dollar to dollar, but have to buy dollars from the trading provider at a price that is 5-10% more expensive than the fair price. On the other hand, when you make a withdrawal, you cannot TT to a US$ account and are required to sell your dollars at a lower price.
Logically, the purpose of this very high buying and selling spread indirectly provides instant profits to trading operators where every time a new member enters, the organizer has pocketed a profit of 5-10% and this indirectly explains why this alleged Ponzi scheme can long-lived.
3. The trading robot offered does not exist
There is no explanation for the algorithm and how it works, so there is no information on what the weaknesses of the Trading Robot are and this Trading Robot cannot be run on other forex brokers.
Do Ponzi scheme participants always end up dead?
In theory, if a Ponzi scheme participant enters early and exits before the Ponzi bubble bursts, he or she can benefit and not become a victim in the event of a default. BUT, the human name is basically greedy and lazy.
So if there is an opportunity to get big profits without the need for hard work, of course it will make him complacent and blunt his logic. Once a big profit and fixed several times, then his logic and vigilance will decrease and believe the Ponzi scheme to be true.
The majority of people when faced with a Ponzi scheme will not leave when they are profitable, but add the amount of money invested into the Ponzi scheme or even invite relatives and friends to join this scheme. When this Ponzi bubble bursts, let alone friends, even relatives can become enemies and the dream of getting instant profits without working alias lying down for money must be buried and returned to reality.