Novatech scam

Novatech scam – is the platform legit or a scam? How can you protect yourself?

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PUREVPNSecurityNovatech scam – is the platform legit or a scam? How can you protect yourself?

In this blog, we will discuss a company called NovaTech FX. People also refer to it as novatechfx. The main question here is: 

Novatech scam

Is Novatech FX a Scam?

Well, there are so many red flags. For instance, people had difficulty taking cash from the platform, and the company needed to register with a regulatory body. There is even a possibility of some pyramid schemes going on. 

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Let’s learn about these scams and conclude if investing in Novatech is safe.

NovaTech FX – Red Flags 

Novatech was registered in 2019, so it is still relatively new. Also, it is said that the company’s founder was involved in some scams. Novatech FX is not considered safe for investment because of these reasons.

Source

  • Lack of actual trading activities: There needs to be evidence to support the fact that the basic trading activities are happening on Novatech FX. The new members may be contributing to the payouts of old members.
  • Lack of authority body: The company needs to be registered with the Securities and Exchange Commission (SEC).
  • Too good to be true: Some platform users claim an average return on investment (ROI) of about 3% per week. The platform also argues that if you reinvest your money, you can double it in around five months, which is too good to be true.
  • Fake locations: People have found two mock places on their website.

Shady message by the Novatech admin – On January 24th, 2023, the admin on the platform shared the shady news that due to the high volume of cash-out requests, you may have to wait for your payments, and it’s been shady ever since. Is it a Ponzi scheme, or are they running out of funds?

How does Novatech operate? 

NovaTech FX is a brokerage firm. There you have the option of trading in the forex and crypto market. They offer a range of trading services and software. If you want to join the platform, you usually need a sponsor to guide you through joining and making your first investment. 

Currently, they offer three types of services:

  • First is the PAMM service, where you let the platform handle your trading activities.
  • Secondly, you can handle all your trading activities by becoming a separate user.
  • You can become an affiliate on the website to earn commissions if somebody joins you.

Who owns NovaTech FX? Are the founders reliable?

You will find these people on the back of Novatech FX.

If you want to feel good, their details can be found on their website, but you will need help finding something on the official website: their history of fraudulent activities. 

For instance, Cynthia and Eddy have previously been involved with AWS Mining (Automated Web Services). The fun part is that AWS mining is known for alleged worldwide fraud, and change.org has even demanded an investigation.

Eddie and Cynthia are now prominent figures in Novatech FX. But can they be trusted?

The discrepancy in the Novatech FX location

If we go by their website, we will see that NovaTech FX claims to be located in St. Vincent and Grenada. But there are two additional addresses on its website, one in Florida and another in Tallinn – Estonia, that can be fictional.

Now let’s say you call the other addresses. You will see that such a company exists there now, which is a major red flag.

Can there be a pyramid scheme on Novatech FX?

It is important to note that you will not find any actual trading activities on the platform. Yes, there is the claim of promoting an investment opportunity, but there is little to no evidence of members having any benefit from the actual trade.

Novatech FX’s focus is more on the P.A.M.M. account for investing. This product has a lot of red flags that resemble a pyramid scheme. 

  • You will find that most of their focus is on referral bonuses and commissions. 
  • They focus more on recruiting new members.
  • No actual trading activity is going there, and they are compensating the old members with the investment of new members, raising concern.

It is said that the scheme or the company will fail when the new members go down.

Some members can still withdraw funds, which happens in every Ponzi scheme. If we go by the red flags, the company will collapse soon.

Change of domain from io to com and no valid registration

There are valid reasons to be concerned about your investment in this company because it lacks proper registration, and it is clear that there are no regulations in place for Novatech FX. 

There is no guarantee that you will always be able to withdraw your funds; the admin’s shady message can confirm this. Also, the founders have been involved in a scam company that raises significant concerns. 

Now, let’s come to the more significant concern: in June 2019, the company changed its domain from novatechfx.io to novatech.com. And currently, the io domain is not working in some regions.

Remember, legitimate businesses keep their domain the same in such a short time frame, and there is always credibility. But with Novatech FX, there is none.

Logging issues 

There are usually many red flags when there is any scam company. We discussed many red flags earlier, and now there is one more: login issues.

In recent times the users of Novatech FX claimed that they are having difficulty logging in to their accounts. The second concern is their inability to withdraw funds. Does that ring a bell? There is a possibility that the company is deliberately holding onto users’ funds.

Is Novatech FX Legit?

We have discussed all the red flags in detail, and it is safe to say that Novatech FX is not legit because there are more concerns than satisfaction. 

Neither any regulatory body is running it, nor has anyone certified it. There are no signs of actual trade, and they are thriving on the investment of new members. 

The only thing that is good about the company is its marketing. The marketing and SEO are so good that it still appears in results, and people are visiting the website in high numbers. According to an estimate, it is still receiving monthly traffic of 35k, which is enough If you are a good scammer. 

The Ponzi and Pyramid schemes are going on, but they are good with marketing. It will be some time before it completely collapses with the investment of innocent investors. It is always a good idea to pay attention to all these red flags and keep on investing in something where the founders have a shady history.

How to protect yourself on Novatech FX?

Sadly, if you have invested, you will have to face the act of your music. According to some users, there is still the opportunity to withdraw your funds. So be sure and be quick and request your payouts. 

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Conclusion

Always do your research before you select any broker for investment purposes. Novatech FX has everything that looks like a scam, including its potential for having Ponzi or Pyramid schemes. So make sure you do not invest any more in Novatech FX.

Frequently Asked Questions

How can I be sure that a broker is trustworthy?

There is no way to predict that a particular broker is trustworthy. Make sure you read the reviews and do your research before investing your money in any exchange or broker firm.

Is NovaTech still in business?

The Capital Markets Tribunal (Ontario), on March 2, 2023, extended a cease trade order that the Ontario Securities Commission issued. It requires NovaTech to stop all trading in any securities temporarily. It can happen due to several scams reported by trading platform users.

What does Novatech trade?

Novatech FX trades in Forex and Crypto.

author

PureVPN

date

January 1, 2024

time

7 months ago

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