Beware! ECryptoService is an offshore broker! Your investment may be at risk.
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
ECryptoService is an offshore broker, that claims to be also based in Bulgaria. It’s web-based trading platform is the typical scammer brokerage firm terminal, with trading conditions that are technically non existent.
ECRYPTOSERVICE REGULATION AND SAFETY OF FUNDS
While going through the legal document, we came up with two pieces of information that seem crucial to the status of this broker. The first thing we came upon is that the broker’s parent company, Day Dream Investments LTD, is located in the Marshall Islands, a location generally associated with offshore brokerage firms that tend to work above the law. The island nation does not have a financial regulator to set restrictions upon brokers. Thus even if EcryptoService is registered there, the fact of the matter is that it is most definitely not regulated there.”Company agent” is registered in Bulgaria under the name UP Services LTD. Bulgaria is not the ideal forex broker destination, even if the country has its own financial regulator, the Financial Supervision Commission (FSC), which guarantees victimized traders with its compensation scheme that covers up to 90% (up to €20 450) of lost client money due to a broker’s insolvency.
What’s more is that nowhere on EcryptoService website does it say that the broker is actually regulated, which, coupled by the above, leads us to conclude that EcryptoService is UNLICENSED, meaning that all those who wish to invest in EcryptoService are at a direct risk of losing all of their money.
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent.
The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
ECRYPTOSERVICE TRADING SOFTWARE
We quickly learn that the trading platform here is no terminal at all. Upon closer inspection, one will notice a small blue logo on the lower left side of the chart that establishes this alleged trading platform as nothing more than a 3rd party “borrowed” chart from an unrelated website. This compels us to claim that EcryptoService does not posses a trading platform of its own, which eliminates any trading conditions the broker might have had. Thus a spread value, leverage, and even assets are not present. Without a trading platform EcryptoService cannot even be considered a broker.
ECRYPTOSERVICE DEPOSIT/WITHDRAWAL METHODS AND FEES
After opening an account, and proceeding with the depositing initiation, we learned that the only way to deposit is via bitcoin, which is untraceable and not eligible for a chargeback. As for withdrawal methods, we were not even able to properly send a withdrawal request, which speaks in volume of the true nature and intentions of this broker.
The minimum deposit seems to be $500, which is double the industry standard, so be aware of that.
The broker has not once mentioned withdrawal fees, yet on multiple occasions it reference some sort of fee or charge, be it governmental or subscription taxes, or system service fees. Here is just one of many such occasions:
We strongly advise traders to only deposit the minimum deposit, or better yet- not deposit at all! As for the withdrawals, scammers are known to either deny such requests, or impose incoming and unexpected charges.
How does the scam work?
The most common type of scamming is in fact a very simple scheme that involves multiple level of commitment from both the victim and the fraudulent broker. In the following section we will dive into the individual elements that make up this scenario.
Users of the net will be lured or intrigued by the countless ads that float around the internet, mostly on popular websites such as social media hubs. These ads promise fast money, and are accompanied either by images of luxury or made up testimonials. Clicking on them redirects users to a so called robo-scam website such as Profit Revolution or Bitcoin Revival, where a simple registration process will require from you a telephone number and email address. We assure traders, that once these details have been shared, they will shortly get a call from the broker or brokers, on whose ad you just “stumbled”; this is when the game begins. The voice on the other end of the line will urge you to deposit in their broker some $250 (approximately), by reassuring you of the possibilities of profit, and the like.
Should you deposit, the initial scammer has just earned a hefty commission from this deposit. Now it’s time for the senior scammer to talk you into depositing more, by claiming that the only way to increase profits is to deposit more and larger sums. These second level frauds are great talkers, charismatic and influential, twisting their lies to sound like the absolute truth.
At some point or another, the trader will inevitably start suspecting something, and will want to withdrawal his/her funds. At this point, the con artists will delay the withdrawal process by persuading you to wait, or by referring to their legal documents that cover specific withdrawal clauses- excuses vary from broker to broker. This delaying process is crucial to them, for trader have a limited time to file for a chargeback with their respective bank. Once the chargeback time frame runs out, traders will have lost their money for ever.
What to do if scammed?
VISA and MasterCard users will be happy to know that have extended their charge back request period to 540 days for when online scams occur. In case a chargeback is unavailable for some reason, the next immediate route is to cancel your credit card ASAP.
Those of you who deposited using VISA and MasterCard will be glad to know that both companies have extended their chargeback time span to 540 days, especially if the reason for it is an online scam.
If any bank details have been shared, like banking pass or security code, traders should be aware that scammer will most certainly attempt to drain your account. In such a case, immediately block the account or change the password.
We also urge users to be very careful with the so called “recovery agents” that promise to recover lost money from unlicensed broker. They charge a fee for their alleged services, and will unquestionably not recover any previous deposit, basically scamming you a second time.