Protecting yourself from online scams impersonating Pepperstone

To help you recognise and avoid the common traps set by scammers, this guide outlines how to identify scams and highlights the steps we take to combat highly sophisticated online threats to protect clients.

Online scammers are targeting Pepperstone users

As a globally recognised broker, our reputation makes us a prime target for scammers looking to exploit both new and experienced traders. By impersonating legitimate companies like Pepperstone, these scams tend to start with creating fake websites or social media accounts that mimic Pepperstone’s branding and design. This makes it incredibly difficult for unsuspecting users to distinguish between legitimate and fraudulent sources.

Scammers employ various tactics to target potential victims, such as by offering fake promotions, sending phishing emails or setting up fraudulent accounts under the Pepperstone name. In many cases, the victims aren’t even current Pepperstone clients but rather new traders searching for a reputable broker.

Common scam tactics to be wary of

Scammers have become increasingly sophisticated in their attempts to deceive traders. Here are some common tactics you should be on the lookout for:

• Fake websites: Scammers create websites that look nearly identical to the official Pepperstone website. Fake sites will use similar branding, logos and design layouts to trick users into thinking they are engaging with the real company.
• Phishing emails: Scammers send emails that appear to come from Pepperstone and ask the recipients to give up their login credentials, financial details or to click on links that lead to malicious websites.
• Social media impersonation: Fake profiles on Facebook, Instagram, LinkedIn and TikTok are set up to represent Pepperstone. Beware of pages that promote “investment opportunities”.

Victims of online scams

Many scam victims are not existing Pepperstone clients. Scammers mainly target new or inexperienced traders who are searching for a trustworthy broker. They entice victims with promises of high returns, fake promotions or urgent warnings that demand immediate action. Once a victim engages, their sensitive information could be stolen, or they might be persuaded to transfer funds into fraudulent accounts.

We have identified numerous scams involving brand impersonation, highlighting the importance of traders remaining vigilant. Our team continually takes action to mitigate these threats and protect traders from falling victim to such scams.

How Pepperstone is taking on the scammers

We are proactive in combating online scams, employing both technological solutions and internal processes to protect clients and safeguard the organisation's reputation. Pepperstone works with external partners to make sure internal communications are always transparent, whilst educating clients about how to identify and report scams.

In early 2024, Pepperstone partnered with a third-party software provider for identifying online scams. Using its cutting-edge technology, the software crawls the web and monitors for fraudulent websites and social media profiles that are impersonating Pepperstone. The service uses bots programmed with specific keywords to scan the web and flag any suspicious content.

The software scans the web several times a week and flags potential scams so that the legal team can then file reports. Preventing problems for further online victims.

We’ve also implemented an internal process through an internal messaging platform to ensure all staff members are knowledgeable about scam detection. Employees can report potential scams in real-time, instantly flagging fraudulent websites, phishing emails or fake social media accounts, to the legal team.

After a report is made, the Legal team will typically issue a cease- and-desist letter or attempt to have the website removed via the relevant domain registrar. In some cases, scams are reported to the Legal team at Pepperstone, or notifications may come from a regulator.

We can guarantee that scams are acted upon quickly with this company-wide internal-reporting system. All scam reports are reviewed by a compliance officer to ensure everything is documented and follow-up actions are taken.

How you can identify and avoid scams

Traders who know how to spot scams are in the best possible position to avoid falling victim to them. Here are some practical tips to help identify fraudulent activity when trading.

Warning signs of a scam

• Suspicious URLs: Scammers will create websites with URLs that are similar to Pepperstone’s official site but contain small discrepancies, such as extra characters or slight misspellings (e.g., “pepperstone-trading.com” instead of “pepperstone.com”).
• Unsolicited emails: Be wary of any emails that claim to be from Pepperstone but contain suspicious links or ask you for personal information (e.g. your account credentials or payment details).
• Social media ads: Fake social media profiles sometimes run ads promoting exclusive offers or high-return investments. Always verify that the social media account is legitimate by checking its verified status and cross-referencing any claims with official Pepperstone channels.

How to verify Pepperstone communications are authentic

If you ever receive an email, phone call, or social media direct message claiming to be from Pepperstone, you can take the following steps to verify its authenticity:

• Check the URL: Always make sure you are on Pepperstone’s official website (pepperstone.com) before entering any personal information.
• Contact customer support: If you are unsure about the legitimacy of a communication, contact Pepperstone directly using the official support channels listed on our website.
• Use the official app: Only download the Pepperstone app from trusted sources like the Apple App Store or Google Play.

What to do if you encounter a scam

If you suspect that you have encountered a scam impersonating Pepperstone, there are four steps to take:

1. Report the scam to Pepperstone via the official support page or by calling customer service.
2. Don’t give out any personal or financial information to the suspected scammers.
3. File a report with the relevant authorities, such as your local cybersecurity agency or financial regulators.
4. Monitor your accounts for any unauthorised transactions or suspicious activity.

Avoiding cryptocurrency demands*

Please be aware of receiving suspicious calls where your details may be requested. Pepperstone will never demand or initiate a cryptocurrency. All cryptocurrency deposits must be initiated by the clients themselves to ensure full control. Deposits and withdrawals can only be initiated via a Secure Client Area (SCA).

Examples of common scams

#1: Fake website luring new traders

An example of a scam involved a fake website that closely mimicked Pepperstone’s official website. The site offered “exclusive trading deals” and encouraged users to deposit funds into a fake account. The site was identified by our third-party software during one of its routine crawls and was swiftly reported to the Legal team. A cease-and-desist letter was sent to the domain registrar, and the scam site was taken down within days. Fortunately, the scam was identified before it could affect too many potential victims.

#2: Phishing email targeting investors

In another case, scammers sent phishing emails claiming to be from Pepperstone’s customer service team. The email included a link to reset the user’s trading account password, directing users to a fake login page that would steal their credentials. Pepperstone immediately issued a warning to its clients, advising them to delete the email and shared tips on how to spot future phishing attempts.

Trademark protection helps fight scams

To combat online impersonation, we use trademark protection for our logo and relevant marks.

By ensuring Pepperstone’s company logo and branding are legally protected, we can take fast action against any unauthorised use of trademarks. It goes well beyond the company name and includes domain names and social media profiles that might infringe on Pepperstone’s intellectual property. In cases where scams involve trademark infringement, our Legal team takes immediate action to shut down these fraudulent entities.

Collaborative efforts to fight scammers

Preventing online scams before they have a chance to victimise users requires the collaboration of multiple teams and external partners. At Pepperstone, fighting scams is a collective effort that should involve Customer Support, Operations, Legal and Compliance teams.

Involving the Customer Support and Operations teams is crucial as it helps broaden the scope of scam detection. Both teams serve as the first point of contact when clients report suspicious activity, and their ability to escalate these issues to the Legal and Compliance teams is what helps speed up response times.

Educating traders is a top priority at Pepperstone, which is why the website is regularly reviewed and updated with more information about scam prevention. From practical tips on identifying scams to outlining the steps to take if fraudulent activity is suspected, traders are provided the resources to verify the authenticity of any communication from Pepperstone.

Defending against online scams

Pepperstone continues to invest in the latest technologies for the detection and prevention of scams. Our partnership with a third-party software provider is only one piece of the puzzle, but it is already helping to identify fraudulent websites and social media profiles in real-time. Combined with internal reporting and client education, this results in a much more robust defence against potential scams.

While online scams are a growing threat, staying informed and vigilant can protect yourself against fraudulent schemes. If you ever encounter a suspicious website, email or social media account claiming to be Pepperstone, report it immediately and check the authenticity of every communication before taking any action.

For more information on our Legal documentation, view here.

* Only applicable to certain licences (SCB)