The phony website Dracomi has gone to great lengths to give the impression that it is an authorized broker. Although Dracomi is not a reliable investment intermediary, it is a great example of why you should thoroughly investigate any company before making a commitment with your money. Let’s examine in-depth why Dracomi is not what it seems to be and how to distinguish reputable financial service providers from con artists.
A genuine financial services provider will have clear and comprehensive information about who owns and runs it, where it’s headquartered, and what licenses it holds on its website. Reputable brokers also give you access to a full suite of legal documents. The mere fact that such material is available does not ensure that it is accurate or deceptive.
The company’s homepage states that Dracomi has its headquarters in Cyprus and is licensed by both the local regulator and Dubai.
But there’s no indication of the company name on the homepage or in the legal documents.
It states elsewhere on the website that Dracomi possesses licenses in Cyprus, Dubai, Australia, and the UK. Links on this page point to the purported licenses that are registered under the name Dracomi Ltd.
HOW DO THEY WORK
A legitimate broker is one that is truly licensed by regulatory bodies like the UK’s Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), or Australian Securities and Investments Commission (ASIC). Clients of these brokers receive protections like negative balance protection and segregation of the client’s funds from the broker’s funds. When selecting a broker through which to invest in the financial markets, you should not only make sure that all the information required by law is available, but also that this information is true. One should always verify that the company is actually listed with the designated regulator and that the domain is among those officially approved for the specific broker.
Financial scammers frequently use rigged trading platforms to trick their victims into believing that their money is actually being invested, but this is completely fictitious and the money goes straight into the scammers’ pockets. It should be noted that the presence of any kind of trading software is no guarantee that this is a legitimate broker.
A large range of trading software, including desktop, mobile, and web-based platforms, is provided to customers by reputable brokers. In the industry, MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are the most used platforms. These platforms have become the industry standard due to the extensive features they provide, such as multiple account usage, a plethora of customization choices, the ability to build and deploy bespoke scripts for automated trading, and the ability to backtest trade methods.
We weren’t shocked to learn that Dracomi only accepts cryptocurrency as payment. Most financial scammers use this as their preferred method of payment. This is because, while cryptocurrencies offer a certain level of anonymity, they also prevent the victim of fraud from requesting a return.
While some trustworthy brokers do accept virtual currencies like Bitcoin, they also accept other clear-cut payment options like bank transfers, credit/debit cards, and well-known e-wallets like PayPal, Neteller, and Skrill.
Regarding the price the trader paid, Dracomi does not give precise and comprehensive information. The 0.1 pip spread we notice in the trading platform indicates that the broker may charge extra commissions. However, the precise amount of these commissions remains unknown.
Only professional clients who satisfy extremely strict requirements for money and expertise are eligible for higher leverage from regulated brokers; ordinary traders are not granted the same guarantees.
Using an offshore affiliate of a well-known company is the best alternative if you’re not a skilled trader but are willing to take on the danger of high-leverage trading.
Dracomi does not list any exceptional requirements for withdrawal. However, these kinds of frauds constantly catch you off guard with additional costs and other ruses to keep you from getting your money back. These traps are often linked to the incentives being given.
HOW TO GET YOUR MONEY BACK
Reclaim Your Finances: Unveiling Tactics to Retrieve Funds from Scammers.
Gather Evidence: Collect all relevant documents, emails, receipts, and any communication with the scammer.
Contact Your Bank or Credit Card Company: If you paid using a credit card or bank transfer, report the scam to your financial institution. They may be able to reverse the transaction or provide guidance on next steps.
File a Complaint: Report the scam to relevant authorities such as the Federal Trade Commission (FTC), Consumer Financial Protection Bureau (CFPB), or your local law enforcement agency.
Notify the Platform: If the scam occurred on a specific platform (e.g., social media, online marketplace), report it to the platform’s support or abuse team.
Remember, prevention is key. Be cautious when sharing personal or financial information online and always verify the legitimacy of offers or requests before proceeding.