Fintech scams are getting more common these days and relying on the industry to solve the issue is simply not enough. As a trading company, OctaFX has useful insights to face this situation.

Fintech solutions seem to be really popular these days, especially since the start of the pandemic. According to a report from Market Data Forecast, the global fintech market is predicted to grow and reach a market value of $324 billion by 2026, growing at a compound annual rate of about 25.18% between 2022-2027. Many people also believe that fintech is starting to replace traditional financial services in various industries like payments, banking, social commerce, etc. Therefore, it is expected that the global fintech market demand will increase in the future.

How to avoid fintech scams - OctaFX guide

Unfortunately, such rapid expansion of the fintech industry doesn't always come unscathed. Fraud and scams have become more common in the fintech market, exposing new vulnerabilities for fintech users and developers. In fact, there was a 70% increase in payment scams across fintech products in 2020-2021. There were also a 200% rise in the digital wallet sector and a 140% increase in crypto exchanges.

It has become clear that the fintech industry needs stronger security measures as soon as possible. However, waiting for the industry to solve the issue of fintech scams might take some time. In the meantime, it's best to know how to recognize fintech scams and protect ourselves. As a trading company, OctaFX has some useful insights for this particular matter.


Top Fintech Scams to Watch

There are many types of scams in the market, but these 3 are the most common and should be on your top-watched schemes:


1. Phishing

Phishing is a type of scam that usually attacks via email. The email might seem to look like it's from legit companies such as banks, brokers, or payment service providers. The goal is to steal your personal information like your bank card details. It might even ask you to install some malware on your computer, which later corrupts your device and demands ransom for unblocking the system or recovering your files.

Here's an example of what a typical phishing attack looks like:

Phishing example


2. Copycat

OctaFX reminds traders that another attack that you should be aware of is called copycat. As the name suggests, copycat refers to a web that clones an actual broker or other fintech services. These sites can actually clone really well these days, making it harder for users to recognize the fraud. The difference might lie in a single letter in the web address, while the rest of the content is almost or entirely identical. If you click on these websites and make a deposit, your money and your bank card details simply go to the criminals.


3. One-day Scam Company

The third type of fintech attack that you might come across involves creating a one-day company, like a forex broker or crypto exchange. The idea is to attract new clients and lure them into making deposits in the company, then disappear the next day, taking all the collected money with them. Alternatively, they might also charge extremely high trading fees that quickly drain your pocket if your trades are unsuccessful.

The good news is that this type of company is usually easy to recognize. Such companies typically don't have a long history of providing financial services and have never been featured in any news or media. Lastly, it's also pretty obvious that scam brokers never receive awards from widely-known international organizations or entities.


How to Protect Yourself from Fintech Scams

If you're looking to participate in the fintech industry, it's highly recommended to take precautionary actions to avoid scams such as:

  • Conduct your own research. You need to be able to recognize the scam before you can avoid it. This is why market research is very important. You can start by looking for reports that contain information about the company, such as how the platform works, whether the platform is regulated or not, who the developers are, and how many people are employed by the company. You can also see the company's track record to see if they are legit or not.
  • Use domain-checker extensions. This is an important step to identify the authenticity of the broker's local page. If you find out that the domain name is different, then it's either a fraudulent website or the intellectual property is used illegally.
  • Beware of social media. Most fraudsters like to nest on social media and mask their appearance. Always make sure that you only follow and interact with the company's official account. Usually, the list of the company's social media accounts is featured on their official website.
  • Double-check before making any payments. Make sure that all of your payments are processed through the OctaFX Personal Area on the broker's official site or app. If you are asked to make payments through other channels like personal transfers or messenger apps, then you are most likely to be scammed.
  • Keep your personal information secret. Never share any personal information on the internet or give access to your wallets before knowing the legitimacy of the requester. Also, use strong passwords and activate two-factor authentication (2FA).
  • Be careful with suspicious emails. Do not click any link or download any type of file attached to an email sent from an unknown address.


Final Thoughts

Scams and frauds exist in practically any industry, not just fintech. And every year, there are new types of attacks that can trap any internet user from all around the globe. While we might not be able to recognize every single one, it's helpful to just stick with the classic phrase: "If it's too good to be true, then it probably is."

In other words, do not be easily fooled by unrealistic high profits or jaw-dropping bonuses with zero fees. Always check the platform's legitimacy before registering.

If you're looking for a reliable broker to facilitate your trades, OctaFX is a great place to start. The regulated broker has been around since 2011 and is well-known for its trustworthy online trading services in over 150 countries. For new traders, OctaFX offers commission-free access to financial markets and a wide range of tradable assets, along with free educational articles, webinars, and more. There are also many useful analytical and risk management tools to help you reach your goal.

🌐 Website
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Segregated accounts
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Islamic accounts available

OctaFX is one of the most famous brokers in the world and has won many awards for its very comfortable trading atmosphere and proximity with customers. OctaFX was founded in 2011 with headquarters in Strovolou 47, Kyros Tower, Nicosia.

Prestigious awards that have been received by OctaFX include the Best ECN/STP 2019 and the 2019 Best Broker in Asia given by FX Daily Info. The Global Banking and Finance Review magazine also gave the Best Broker award in Asia in 2018 to this broker. More than that, there were also awards from European CEO Magazine (Best FX Broker 2018 and Best Trading Conditions).

For traders in most countries, OctaFX is under the authority of Octa Markets Incorporated and is registered in Saint Vincent and the Grenadines. This broker also provides various facilities, such as providing support services by live chat and WhatsApp in Indonesian. Not only that, deposits and withdrawals of funds can be done through various local banks. OctaFX does not charge commissions for every deposit and withdrawal of funds made by traders.

OctaFX offers different types of accounts that are carried out with market execution (STP/ ECN) and floating spreads from 0.2 pips. A variety of forex strategies, ranging from Scalping, Hedging, and the use of Expert Advisors are permitted in all accounts at OctaFX brokers.

There is also a fixed exchange rate offer when opening a Micro MT4 account. All deposits made in IDR will be calculated at the rate of USD1 = Rp10,000 and will be entered into the trader's account balance. Also, Swap-free accounts are available for Muslim traders who want to avoid overnight interest.

Trading in OctaFX is also suitable for novice traders. Because OctaFX offers low spreads, which are floating starting from 0.0 pips. The required initial deposit is also low, only USD25. The currencies used on the account are US Dollars and Euros.

OctaFX gives a bonus of 50% each time a trader makes a deposit. That way, the capital gained by the trader becomes bigger. Opportunities to open positions increased and deposit bonuses can be withdrawn on the terms and conditions.

If traders are still confused about calculating profits, the OctaFX platform provides a trading calculator for each account type. Traders only need to enter the currency pair being traded, the amount of leverage, the number of lots, and the type of currency used in the account.

Opportunities to get profits are also getting bigger with the Autochartist feature. Traders will get notifications quickly when there is a profit signal in trading. The accuracy of the trend prediction reaches 83%.

Traders do not need to worry about the safety of funds at this broker. OctaFX uses segregated accounts and protects personal data and online financial transactions with SSL technology. This is adjusted to the international accounting standards and regulations.

Another advantage offered by OctaFX is the Trade & Win program. Opening an account in OctaFX would open the opportunity to collect trading lots, which can be accumulated into a variety of attractive prizes. Traders only need to open a real account on MetaTrader4 or MetaTrader5 through OctaFX and simply exchange the prize lot in this promotion. Prizes that can be obtained by traders include T-shirts, Android Smartwatches, smartphones, and laptops.

Traders need not worry about missing out on promotions. Because OctaFX often bonuses and other promotions. This broker holds a trading contest every week on a demo account with real prize funds that can be used for trading.

One example of a prize contest is OctaFX Champion - MT4 Demo Contest. With a total prize of USD 1,000, there are places for 4 winners in each contest period. 

OctaFX is an international Forex broker that operates worldwide. The domain belongs to a group of companies called Octa Markets Incorporated which is registered with St. Vincent and Grenadines FSA. Currently, the company focuses on Asian, South African, and Australian markets. does not accept European clients as this market is specifically appointed to (regulated by CySEC).