What is a pass-for-hire service, and how do firms stop it?
Quick answer
A pass-for-hire service is a third party that trades a buyer's evaluation to pass it for a fee, then hands over the funded account. It breaks the purpose of the evaluation and usually leads to fast breaches or abuse later. Firms stop it with identity checks, behaviour comparison and terms that void such accounts.
Detailed answer
How firms counter it:
- Terms that void accounts traded by third parties and deny related payouts.
- KYC that ties the payout to the person who bought the challenge.
- Behavioural comparison between evaluation and funded trading.
- Location and device patterns where available.
- Fresh credentials for the funded account.
Detection is never perfect, so focus on making it unprofitable: if a funded account's trading looks nothing like the evaluation, review before the first payout. PropExecutor's reports allow side-by-side comparison of the two accounts' deals, holding times and risk statistics.
Communicate the consequence
State clearly that accounts passed by a third party are void and that no payout will be made. Many buyers of passing services do not realise the risk; a visible rule discourages them before they pay a passing service and you have to deal with the consequences.
Make the rule visible at checkout as well as in the terms.
PropExecutor team · Updated
Related questions
All 16 questions in Abuse, fraud and prohibited strategies · Every category