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Get Effective Consultation on Recovering Your Funds Back From a Forex Scam

Category: Forex
Length: 20 Pages
Reading Time: 35 Minute

Excerpt: Fraudsters frequently promote their ‘get wealthy quick’ internet trading platforms on social media. Fake celebrity endorsements and photos of luxury products such as pricey watches and cars are frequently used in posts. These subsequently lead to professional-looking websites that urge customers to invest.

April 21, 2022

Introduction

Did you get tied up in a forex trading scam and now you don’t know what to do? Recent studies have shown that almost 1:10 traders get wrapped up in a Forex-related scam and the dangers that surround them. Forex Trading scammers have robbed innocent individuals of millions of dollars in the currency exchange market. However, fear not! Because all the money lost can be regained through the strategies outlined by expert recovery agents. Before we get into those strategies, why not enlighten ourselves with what exactly currency trading is, how scammers go about their frauds, and various techniques we can use to recover your stolen money.

Over £27 million lost to scams involving Forex and Crypyo investments in 2018 - 2019

Securities and Exchange Commission

If you’re someone who is into Forex Trading, then you’re definitely at the right place. We can give you the best practices in identifying red flags as well as help you in recovering your stolen money from scammers!

Table of Contents

CHAPTER 1: What is Currency Trading & The Scams Surrounding it?

Currency trading takes place in the forex or also known as the foreign exchange market. Currency is significant because it allows us to buy goods and services both locally and internationally. To undertake international trade and business, international currencies must be exchanged. The Foreign Exchange Market (Forex Market) is where currencies are traded. It is the world’s only completely nonstop and continuous trading market. Institutional firms and huge banks dominated the forex market in the past, acting on behalf of clients. However, it has recently become more retail-oriented, with traders and investors with a wide variety of holding sizes participating.

While forex or the foreign exchange market appears to be legal on the surface, “there are many potential negative actors in the area, and it is a good environment for spoofing, ghosting, and/or front-running,” according to the report. The rise of online-based trading forums has only increased the hazards, allowing for more fraudulent promotional schemes, overstated profits, and the inability to pay up for victories. “Furthermore, certain actors are rigging the system with manipulative software.” The fundamental problem with forex trading is a lack of transparency, as well as opaque regulatory systems and insufficient control. There are, however, forex items offered on exchanges that are regulated.

Scam

Similarly, there are reputable brokers who make a living on the market. The Financial Conduct Authority, short for (FCA) and Action Fraud, has issued warnings to the public about investment frauds involving phony online trading platforms. This warning comes as reports of crypto assets (crypto) and forex investment scams more than tripled to over 1,800 last year. Fraudsters promise great returns on cryptocurrency and F.X. investments, with victims losing a total of £27 million in 2018/19. After you’ve been scammed, you might be able to get your money back. The circumstances determine what you should do and whether you’ll obtain a refund.

Fund recovery organizations exist to assist you in locating the fraudster and, in most cases, guarantee that you will receive your money back. They work diligently with their skilled staff and technology to prepare legal papers to reclaim your monies. Chargebacking is a well-known fund recovery service. Foreign exchange (F.X.) frauds frequently target people through newspaper adverts, radio, television, and the internet. 

The advertisements present you with an exciting opportunity to participate in the forex market, purchase software, or enroll in trading classes. Your money is just stolen by the scam artist rather than being invested in anything in most cases. If you have money invested in the forex market, you may not have been informed that it is an extremely dangerous investment. You’ll almost certainly lose part or all of your money. Forex traders should be wary of false promises; in this post, we’ll look at some common forex scams and how to spot them.

CHAPTER 2: What Are Some Steps You Should Take as Soon as You Realize You Might be A Victim of A Forex Trading Scam?

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Fraudsters frequently promote their ‘get wealthy quick’ internet trading platforms on social media. Fake celebrity endorsements and photos of luxury products such as pricey watches and cars are frequently used in posts. These subsequently lead to professional-looking websites that urge customers to invest. Investors are frequently misled into believing that their first investment has profited. The fraudster will then call the victim to get them to invest more money or recommend them to friends and family in the false hope of making more money. However, the returns finally stop, the customer account is canceled, and the scammer vanishes without leaving any trace.

Try and contact your broker first to see if he is actually a scam or not

When the interaction between a trader and a broker begins to break down, serious issues might arise. If a trader gets no questions and comments from their broker or receives vague answers to their questions, this is a typical red flag that the broker is not looking out for the client’s best interests. This type of problem should be rectified and explained to the trader, and the broker should be friendly and maintain good client relations. The inability of a trader to withdraw money from an account is one of the most damaging difficulties that can occur between a broker and a trader. The initial step should be to contact your broker and lay everything out in front of them.

Look out for these broker tells

men holding bitcoin
  • Parodying (also known as ghosting)- The perception of interest in a position is created when a trader manipulates the market by placing a large order that he or she does not plan to execute in order to generate the appearance of interest in the position. 
  • Being in the lead- When a broker expects a large order from a client and places an order for the broker’s own account beforehand. 
  • Those who sell signals include the following individuals-Firms or traders who promise to discover buy or sell signals that indicate an appropriate time to conduct trade in exchange for a fee.
  • Scams involving robots- The promise of utilizing a trading program, sometimes referred to as a “robot,” to conduct automatic forex trades.

The most important thing you can and should do to avoid forex scams is to study the underlying broker. 

Look for Form ADV Part 2 from the firm, which requires advisors to produce booklets explaining their business methods, fees, conflicts of interest, and disciplinary information in plain English. This form should be available on any SEC-registered U.S.-based company’s website. “You can’t check anything if the corporation isn’t registered with the Securities and Exchange Commission.” It’s also a smart option to remember that if anything seems too good to be true, it most often is. 

Brokers may offer auxiliary services like selling signals or other automated services, which can result in account churning and additional fees for customers. If you have any worries or queries, consult a knowledgeable third party, such as a lawyer or other financial expert, who can properly research the broker and its trading program.

Report the broker to the authorities

typing with chain

You should notify the commodity commission if you suspect you have been a victim of commodity futures, options on futures, swapping, commodity groups, binary options, foreign currency, virtual currencies, or other derivative markets fraud. If you’ve been a victim of various sorts of fraud and aren’t sure where to file a complaint, the Department of Justice provides a list that can help. Additionally, federal agencies work closely together, and your complaint will be forwarded to the appropriate agency.

You could also report the scam to the police and the district attorney if it happened in your neighborhood. You may also need to report it to the police if you want to pursue an insurance payout for fraud damages. Also, call the financial regulator or attorney general in your state. Authorities in the state may choose to file lawsuits in state court.If you have used a credit card, contact your bank to request the transactions be blocked. Take the required steps to limit access to your accounts and protect yourself from identity theft if you submit payment information to scammers.

• Debit and credit cards

If you utilize credit card information in a fraudulent transaction, report it right away to your care providers. You may be required to obtain a new account number as part of the process. You can also place a fraud warning on your credit file by contacting one of the three national credit reporting bureaus (see below). The fraud warning will be automatically reported to the other credit reporting companies by the credit reporting firm you contact. A fraud notice will inform potential creditors that they must verify your identification before issuing new credit in your name.

• You can also get a security freeze for free

lock with laptop back

Placing a fraud alert is free and normally lasts up to one year or until you ask for it to be removed. A security freeze prevents identity thieves from opening accounts in your name by restricting access to your credit file. To establish a freeze, you’ll need to contact each credit reporting company individually. You will not be able to lift a security freeze until you specifically request it. Information from the automated clearing house (ACH) of a bank. Contact your financial institution or credit union right away if you provided the fraudster with your bank account number or routing information. It’s possible that you’ll need to close the account and create a new one.

• The individual's social security number

Place an alert for fraud or a credit freeze on your account, and report your personal information stolen to the Federal Trade Commission’s identitytheft.gov website. Scams claiming your social security number is linked to unpaid taxes or other debts should be avoided. Before paying any money, independently verify allegations with the IRS or creditors.

• Passwords and log-ins

user password

If you use usernames or passwords that you use elsewhere to register for access to a fraudster’s website, make careful to change your accounts with new log-ins as quickly as possible.

• Additional precautions to safeguard your identity

Identity theft can be reported, and further recovery measures can be found at identitytheft.gov. If you see a payment from your bank account that you don’t recognize – this is known as an “unauthorized transaction” – contact your bank right away. If you’ve used your debit card and more money was taken than you planned, contact your bank right away. Explain what happened and ask if a refund is possible. You have the right to file a complaint with the bank if you are dissatisfied with how the bank handles your claim. Check out their website to learn how to achieve this.

Check that the Forex broker is regulated so that you can rely, if possible, on the country’s supervisory body.

shake hands

Brokers who are not regulated are not required to report to a regulatory agency. This means you’re out of luck if they defraud you in any manner, whether it’s through “glitches” or “malfunctions” in their system that cause significant slippage or if you try to withdraw money and they don’t process it (steal your money). There is little you can do except submit a poor review online because these brokers have no lawful power to answer. What is the best way to find out if a broker is regulated? Checking a broker’s registration is as simple as looking for it at the bottom of the website. 

Risk disclaimers and regulatory information must be included at the bottom of every page of a licensed broker’s website. ForexBrokers.com includes a Score that shows the trust for each broker, which analyses overall trustworthiness depending on where the broker is regulated and its experience as a firm to make it easier for investors.

HAVE YOU BEEN SCAMMED AND NEED HELP IN FIGHTING BACK?

Scammers can create complex scams that can trap even the most cautious of people. But it’s not too late because we can help you track the damage done by scammers. We can help you get your money back!

Contact a lawyer / experienced funds recovery firm in forex because a professional will know how to get you your money back

Insurance against fraud and theft. Check your homeowner’s policy and paperwork to check if it covers fraud losses or reimburses for expenses linked to identity theft.

• Consult a tax professional

It may be limited to your initial investment and not expected earnings, or it may only cover expenses incurred to correct difficulties created by identity theft. Scam losses may be deductible in the year the fraud was uncovered if you itemize deductions on your personal income tax return. Calculating the deduction can be difficult, and there may be certain exceptions.

• Seek the advice of a financial counselor or advisor

Losses in retirement funds or considerable debt may necessitate the assistance of a competent financial advisor. Be wary of credit restoration organizations that claim to be able to eliminate your debt completely. A financial advisor or a professional can help you assess your present circumstances and provide a strategy for rebuilding savings, cutting spending, lowering interest costs, or identifying other sources of income.

• Recovering funds that have been misappropriated as a result of fraud

If you wish to hire a lawyer or a corporation to help you recover money lost to fraud, make sure to ask what services will be provided, what the expenses will be, and how you will be invoiced, and get all of the answers in writing. Check with your local bar organization to see if attorneys are licensed in your state and if any complaints in the past have been filed against them. 

Be aware of asset recovery companies that charge expensive fees for doing little more than mailing a demand letter to the original scamster and filing a generic complaint with the appropriate regulator. If the con artist is bankrupt, the demand letter will be useless, and you can file a complaint with government regulators for free.

Don't pay any more money

crypto coin

This may seem self-evident, but certain schemes rely on the promise of enormous payouts to encourage victims to submit charge after fee, even when they think something is wrong. A substantial surge in online fee fraud has been observed recently. Genuine brokers would usually deduct fees and commissions from your account before releasing your earnings or principle, rather than demanding additional money. 

Brokers in the United States will never withhold or collect taxes. Also, keep an eye out for recovery scams. These scams target recent victims, claiming that they can recover stolen funds if they pay an upfront charge, “gift,” retainer, or back taxes. Advance-fee fraudsters frequently act as government officials, attorneys, or recovery companies.

CHAPTER 3: Why Should You Rely on A Funds Recovery Firm to Help You Get Your Money Back?

It can be difficult for those who invest in online trading to tell if money lost was due to inherent risks in trading or whether it was orchestrated unlawfully, and it can be practically impossible to tell if you have been a victim of a forex broker scam without expert advice. Trading in the foreign exchange market is always a risk, and it is possible to lose money due to mismanaged funds. However, this does not mean that losing money due to mishandled funds is acceptable. True, no one can promise that what has been lost will be returned, but in most circumstances, at least a portion of the investment can be recovered.

audit investigate

The first step is to denounce the scammers because this allows legal authorities to act and freeze cash where possible. 

  1. Inform the authorities about the broker; 
  2. If you used a card, either debit or credit, call your bank to request that the transactions be banned; 
  3. Verify that the Forex broker is regulated so that you may rely on the country’s supervisory authority if possible; 
  4. Consult a lawyer who specializes in forex. 
  5. To get your money back, contact a fund recovery firm. 

As in the situations of AFX Capital Markets Ltd and PlexCorps, investors who expose a fraudster may be able to receive compensation from an Investor Compensation Fund. This is why it is always critical to report as soon as possible. Remaining mute does nothing to assist you or others who have fallen victim to these con artists. Victims of scams, particularly investment frauds, are approached by third-party asset recovery organizations that promise to register complaints with regulatory bodies and assist in the recovery of victims’ funds in exchange for a fee. Investors who have already been scammed should be wary of engaging these services, especially if the asset recovery firm is just following steps that the investor could take himself.

WORRIED THAT SOMEONE HAS YOUR PERSONAL & BUSINESS INFORMATION?

With how easy it is for scammers to acquire your data, it’s reasonable to be alarmed. Protect yourself and your loved ones by getting advice from experts. We will guide and even help you get your money back from scammers.

Despite the fact that some of these asset recovery firms claim to have sophisticated asset recovery or even legal knowledge, some of them do little more than compose a demand letter to the initial scam artist and file a boilerplate complaint with the appropriate regulatory agency. Those are two simple, cost-free steps that victims can take on their own. If you’re thinking about paying an asset recovery company to look for money you’ve lost in a scam, make sure you ask what steps the company will take on your behalf and at what cost, and then think about whether they are steps you can take yourself and, if so, if they’re worth the money.

Hiring a third party saves your time

One factor is the financial expenditures, but what about the time and effort required to pursue scams properly? Scam recovery, even at a basic level, may put a huge drain on an organization’s time and resources. It’s a nuisance and a distraction that you don’t need. As a result, one of the most significant advantages of enlisting the help of specialists is the speed and simplicity with which the procedure may be completed. All while allowing you to concentrate on what really matters: operating your company.

Hiring a third party can save your money

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Professional fraud recovery services are not always free, but they can still be the most cost-effective option. Once again, you must examine the extent to which DIY asset recovery can be a significant drain on precious resources. Furthermore, there are no guarantees that the DIY technique will result in a favorable solution. The larger the scam and the more pressing the problem, the more money you could save by hiring assistance.

Legal Protection

Today, the asset collection industry is governed by a plethora of rules, and well-informed customers will not be shy to sue if their rights are abused. Asset collection agencies are aware of this, which is why they are knowledgeable about the legislation. Third-party collection agencies are well-versed in both federal collection regulations and the laws of the state in which they are licensed. Allowing a fraud collection firm to recover payments on your behalf reduces the legal hazards of trying to recover funds on your own.

Official Authentic Documentation

Collection agencies keep track of their communications with scammers. If you try to prosecute a scammer in the future, the fund recovery agency will keep detailed records of every attempt they made to reach the scammer. This paperwork shows the court that you went to great lengths to recoup the swindle.

CHAPTER 4: Holistic Consultancy Based on Common Forex Scams

consultation

The spot foreign exchange market, which includes currency options and futures contracts, moved around $6.6 trillion every day as of April 2019. Forex scams encourage unscrupulous operators to earn rapid money with such a massive amount of money flowing around in an unregulated spot market that trades instantly, over the counter, and with no accountability. Despite the Commodity Futures Trading Commission’s short for (CFTC) vigorous enforcement efforts and the establishment of the self-regulatory National Futures Association short for (NFA) in 1982, some old scams survive, and new ones keep springing up.

Unlicensed forex brokers or dealers

Forex advertisements on social media are already synonymous with photographs of expensive vehicles or homes, and some scammers even exploit celebrity endorsements to convert social media followers into consumers. Those who lack the patience necessary to profit from forex trading may resort to perpetuating forex scams. Some people do this since they already have some forex trading technical knowledge. While most retail traders are now educated enough to recognize such scams and only deal with reputable brokers, many people, particularly in Asia, Africa, and even industrialized countries, fall prey to frauds that are simple to discover if you are aware.

question face men

Regulatory authorities in certain parts of the world govern retail forex and CFD trading. Financial Conduct Authority (FCA) in the United Kingdom, Australia Securities and Investment Commission (ASIC) in Australia, Cyprus Securities and Exchange Commission short for (CYSEC) in Cyprus, FSCA in South Africa, CMA in Kenya, and so on. Retail forex trading, on the other hand, is not regulated in many countries. Thus any forex broker operating in unregulated areas must obtain a foreign license from largely offshore regulators. According to Safe Forex Brokers U.K., forex trading is unregulated in most of Africa and Asia, although many offshore CFD brokers still welcome clients from this region.

These brokers not only tolerate but actively push forex trading without limitations. While some reputable forex brokers with a track record of being highly regulated in various jurisdictions exist, the majority of brokers in these areas are not licensed by any regulatory authority. Unlicensed brokers run brokerage firms and provide trading platforms to the general public, and when a trader deposits funds, he is unable to withdraw them. 

As a general guideline, you should go to the local regulator’s website and look for a list of regulated forex brokers in your nation before dealing with any forex broker anywhere in the globe. If trading forex and CFDs is prohibited in your jurisdiction, you should avoid using international brokers. Avoid any brokers who are not multi-regulated if there is a grey area, such as a lack of enforcement, but it is not unlawful, and you still want to trade. Always double-check the broker’s authorization and legality on the regulator’s website.

Fake Signal sellers

stocks on black

A popular modern con is the signal salesperson. Signal sellers are retail firms, aggregated asset managers, portfolio management firms, and individual traders who charge a daily, monthly, or weekly fee for a method that purports to discover favorable moments to buy or sell in short trade a currency duo based on professional advice that will make anyone wealthy. They brag about their wide trading knowledge and abilities, as well as testimonials from others who attest to the person’s abilities as a trader and friend, as well as the substantial wealth they have amassed for them. All the inexperienced trader has to do is hand over some cash in exchange for trade tips.

Many signal-seller scam artists just steal money from a limited number of traders before disappearing. To keep the signal money flowing, some will recommend a fantastic deal now and then. This new ruse is gradually becoming more widespread. Although there are honest signal sellers that carry out trade operations according to plan, it is prudent to be wary. 

The signal seller scam entails someone or a company supplying information on which trades to execute and claiming that the information is based on professional forecasts that would make money for the inexperienced trader. They usually charge a daily, biweekly, or month-by-month price for this service, but they don’t give the trader any information that would help them make money. In order to gain the trader’s trust, they will usually have a flurry of testimonials from allegedly reliable sources, but they will do nothing to predict profitable trades in reality.

online future

Trading signals and robots that notify a trader when to place a trade or close a position are sold by some scammers. These forex robots are great for assisting you with technical analysis, but they should not be utilized to anticipate the market. The sellers may claim that their signals have a success record of 98 percent and ask for a charge from the trader. 

After paying the money, the trader begins to receive email notifications whenever a new signal is released, and the trader uses this information to conduct a trade. The issue is that after parting with money, the scammer usually sends a few email signal messages before cutting off communication with the trader. There’s also no certainty that these signals will function. These con artists prey on inexperienced traders who are searching for a quick way to profit and are looking for a method that is both passive and guaranteed to work.

Price Manipulation

The majority of forex brokers’ Standard Accounts are spread only with no commissions, but the spread compensates for this. The spread is the difference between a currency pair’s bid and ask prices. Because major currency pairs like the EUR/USD are traded in significant volumes, their spreads are tighter, whereas developing market currency pairs have wider spreads. When the price is manipulated, key currency pairs, such as the EUR/USD, have extremely wide spreads. 

The broker could claim that their spread is bigger than other brokers’ due to the bank with whom they deal on the backend, or they could invent other justifications. Traders should inquire about the spreads offered by other brokers for the currency pair in question. Scams of this nature have been less widespread over time, yet they still persist. This is why it is vital to choose a Forex broker who is registered with a regulatory body. In these types of scams, spreads of around 7-8 pips are used instead of the customary 2-3 pips.

Is the broker prone to price manipulation?

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The quote and ask rates of a currency duo can also fluctuate between the time a trade is opened and the time when it is conducted. Slippage is the term for this. It could be due to a service disruption that hinders transaction execution, or it could simply be a currency risk that a trader faces in a turbulent forex market.

Are there too many slippages?

A rogue forex broker could take advantage of this by refusing to execute orders until the exchange rate of a currency pair falls, triggering the trader’s stop-loss order, which then becomes a market order, forcing the trader to cut his losses and sell the currency pair at the next available price, which the broker purchases at a discount. To circumvent this, certain brokers, such as CMC Markets, offer guaranteed stop-loss orders (GSLOs), which a trader can purchase for a refundable charge to protect against slippage risk. Traders should always go to internet App stores and read user reviews about their brokers’ apps to determine whether anyone has complained about price manipulation or unlawful activities. This should be done on a frequent basis.

HYIPs: Ponzi schemes & pyramid schemes

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High yield investment programs (HYIPs) are a type of Ponzi scheme that promises a high rate of return in exchange for a small initial investment in a Forex fund. In reality, the early investors are repaid from the money generated by current investors, and a continual stream of new investors is required to keep the money flowing; once there are no more participants in the scheme, the owners frequently close it down and collect all of the money. Ponzi schemes and other High Yield Investment Programs (HYIPs) collect resources from the unknowing public to participate in forex trading or other investments with the promise that the profits will be shared among all donors.

They work in the same way as funds, gathering capital to invest on behalf of clients. They also guarantee very large profits and begin paying out payments to the first contributors. Ponzi schemes entice victims by recycling money received from early contributors and using it to pay subsequent contributors, giving the impression that the scam is real. Investors are persuaded to put more money into the scheme when they see their investment rise. Payments halted after the Ponzi scheme administrators had amassed large sums of money from their victims, and they closed shop and fled.

Scams involving foreign exchange are quite widespread in African countries

stocks daily result

For example, there was a recent MBA Forex scam that mostly targeted Nigerian investors. A forex company with a trading platform is commonly involved in forex pyramid schemes and multi-level marketing. They are using the pyramid strategy to incentivize traders in order to recruit more to their platform. The person at the top of the tower recruits two people who will be below him on the pyramid. The pyramid continues to grow as the two people below him recruit three more people. Every time someone is hired, the person at the top is given a commission, and so on. The higher up the scheme you are, the more commission you will receive.

A scammer may employ a strategy like this to entice victims to patronize his business, offer them forex videos, signals, and materials, and then vanish with their money within a short period of time. When investigations begin, initial HYIP donors may have their money clawed back, so it’s best not to try to get lucky and rich overnight and avoid these HYIPs totally. Investors should constantly inquire, verify, and confirm whether the entity with whom they are dealing is licensed to operate in their nation and provide financial advice. Are they permitted to collect cash from the general public for investment by appropriate regulatory authorities?

Promises of Rewards and Bonuses

Gift

Forex markets may be extremely volatile, and margin trading carries a substantial risk of loss. That is why major regulators require brokers to post risk statements on their websites to advise potential traders about the risks involved in trading F.X. and CFDs. If a broker is spotted promoting bonuses such as a $70 bonus on account opening, risk-free trading, or 80% returns on acquiring trading signals, this is a red flag. These claims of rewards are merely red herrings designed to divert the trader’s attention away from the required due diligence. Most major regulators forbid brokers from making any offers.

Managed trading accounts

If a forex trader is unskilled or too busy to trade, he or she can open a trading account and have it managed by a professional account manager. For their services, these professions demand a fee. There are various examples of managed accounts that could be construed as a form of Forex fraud. These scams usually include a trader taking your money and spending it on a range of high-end items rather than investing it. There isn’t enough money to refund the victim when they plead for their money back. 

Scammers have taken advantage of this by offering to manage traders’ accounts and then defrauding them. They could make deals that aren’t in the client’s best interests or steal their money outright. Traders should look at the account manager’s history to see how successful he has been in the past, as well as their risk management plan and previous drawdowns, to see how efficient the fund manager is. The account manager must also have a valid operating license from the appropriate authorities.

Social Media Gurus

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Most online motivational forex videos and advertisements feature expensive yachts, cars, and other objects, with the goal of making the viewer believe the speaker/guru obtained all of these stuff through forex trading profits. These so-called gurus don’t discuss the drawbacks of trading, instead focusing solely on the advantages. Some of them operate or collaborate with unregistered brokerages, scamming investors in the process. Forex brokers are required to post risk statements on their websites by market authorities all over the world.

This remark emphasizes the dangers that traders encounter when trading, and some regulators have gone so far as to require brokers to disclose the percentage of customers who lose money when trading with them. This is typically located near the end of the broker’s website page. Even the leverage that CFD brokers can offer to ordinary traders has been limited by regulators. This regulation is disregarded by social media gurus, who claim that their programs are practically risk-free, which is simply not true. If the so-called winning recipe were genuine, they wouldn’t be out distributing it. Don’t take social media advice at face value. Forex trading risks are difficult to manage, and trading on margin is particularly dangerous.

CHAPTER 5: How do I Spot Forex Scams?

scam keyboard

Understanding how to correctly trade in the Forex market is the single most critical thing a person can do to avoid getting deceived. The problem is that finding trustworthy Forex exchange brokers/teachers is difficult. The novice must ensure that the broker has made the money he or she claims to have made; due diligence is essential in this case. The Forex market is not a game of chance but rather a legitimate business where trillions of dollars are exchanged every day. Before trading for real money, use demo accounts to discover how to make long-term earnings. Be warned that, like any other professional talent, mastering the Forex market effectively can take years.

‘You can make money rapidly’ claims should be avoided at all costs. Do not accept the assertions made at face value; instead, conduct your own investigation. An unskilled trader should be cautious in their approach, analyzing statistics and developing their own functions that they have already tested and shown successfully on a sample account. This will take some time, but it will benefit the rookie trader more than relying on a computer program. Do not jump into an investment that appears to be “too good to be true.” 

Another issue to look into is the legitimacy of the firm that is making the claims or selling the expertise/course. To do so, look into the region/jurisdiction where the company is registered, as many exchange scammers will trade from a place where they believe local law will make it difficult for them to be prosecuted worldwide.

Work with Experts on Your Funds Recovery Plan for A Forex Trading Scam

Chargebacking is a funds recovery investigation firm that attempts to provide you with the top consultants in the industry in order to recover your money from a scammer. They are aware that many people have been duped out of large quantities of money, and charge backing is here to help you fight back. Their professionals come together to study, analyze, and probe details in order to hunt down and identify the scammer – and they don’t stop there; they also help you recover the money you lost. They are a well-known funds recovery organization with a global reputation.

Chargebacking has been in operation for over seven years, and they have recovered about $100,000 for our valued clients in the last few years. There are over 800 clients in the portfolio, and not a single one has lost a lawsuit against a fraudster. When it comes to confronting a scammer, the company believes in a strong, no-nonsense approach to ensure that their clients’ money is returned in the most efficient and effective manner possible. They will assist you in retrieving your assets, regardless of how complicated the case is. Charge backing has onboard specialists and professionals who ensure that the activity is managed efficiently and with the concerns of the client in mind and priority.

Every one of Chargebacking’s representatives has more than three years of experience in their respective field, which makes them incredible at what they do – not only because they are passionate about their work, but also because their clients are! Anyone you contact within their organization, from customer service to lawyers and forensic accountants, is obviously positioned to assist you. 

Their team will be your continuous ally throughout the entire process – no matter what it takes – from the initial examination of the case to gathering proof and then battling the fraudster and retrieving your money. This organization’s creator did not come up with the concept of Chargebacking on the spur of the moment! Instead, he was a victim of a banking scam — Mr. Eddie Marckenson was duped into almost losing $15,000 as a result of banking fraud, specifically a cheque scam. 

DO YOU NEED EXPERT ADVICE?

We have encountered victims who were mentally and emotionally drained when they were scammed out of their money. We can help you with your legal and technical concerns. We can help you get your money back.

The Chargebacking creator intended to pay his son’s university tuition fee with a check, but the check was intercepted and ended up in the wrong hands when it was sent to his son at university. Mr. Marckenson’s bank account had been robbed of $15,000 by a scammer who had gone into thin air. When Mr. Markenson’s son found that his tuition fee had been taken, he was distraught, and his father told him, “Rather of ruminating on what has been taken from you, rise up, fight, and reclaim what is properly yours.” Following that, he used his 6+ years of experience in the chargeback industry and risk management market to educate himself on the laws, rules, and regulations of filing disputes and claims against scammers and was eventually able to retrieve his money after a lot of hard work, follow-ups, and battles with financial bodies. That’s when Mr. Marckenson realized there was a gap in the market; not everyone has the time or resources to fight fraud cases, so why not help individuals by building and defending their cases for them? 

Forex is the wild west of traditional monetary tools in the world of investments. Nonetheless, significant financial institutions such as banks make up a large share of the membership, which helps firms manage cross-currency rates for financing or purchasing goods. It is, however, by far the most open and least expensive venture that anyone may undertake. A broker may ask for a minimum deposit of $5,000, whereas many forex firms expect $1 to begin with. In the United States, day trading equities require a minimum total of $25,000; forex does not. It is the most engaging business sector due to its easy access to essential influence and the fact that it is available 24 hours a day, seven days a week. However, this also attracts a substantial number of troublemakers, or as we call them, scammers.

A few countries control forex markets, but not as consistently as the United States. Many countries have few regulations and allow anyone to create a money market fund in their jurisdiction. Because there are so many scammers and fraudsters on the market, it’s best to stick with dealers based in the United States, the European Union, or the United Kingdom. Forex con artists are constantly coming up with new and imaginative ways to defraud unsuspecting victims. These con artists improve their system’s ability to perform customized trades that provide tremendous benefits even while you sleep. The new term is “robot,” which refers to the ability to work naturally. Regardless, a large portion of these constructions have not been subjected to a traditional examination and have been attempted by a free source. 

Scammers in the forex market are rarely addressed by brokers. They are usually individual players that pose as agent groups despite the fact that they are not yet organized. Frequently, they are well-versed in hacking techniques and can create fictitious data on the website they created. The owners of such fraudulent websites do not have a permit and hence are not properly regulated. 

They don’t always have fundamental information about the Forex market, either! However, not everything is self-evident to an amateur investor who has not been trained in financial elements of money. For example, a person might go to a well-planned site and see contagious promises of advantage, as well as terms or idioms like “spread” and “moment fulfillment of instructions.” For the novice, this could give the untrustworthy site a sense of authenticity. Individuals then join up, set aside an installment – and this is where the most exciting part begins – and sophisticated technology is used to manipulate them.

Boycotts of Forex scam sites usually fall into three categories: 

  • Brokers who work on the side 
  • Shops with buckets 
  • Ponzi schemes 

If you’ve been a victim of scams similar to the ones stated above, contact Chargeback right away to learn how you can get your money back. Are you aware that Chargeback can help you recover monies that have been lost as a result of an online scam or fraud? If you’ve been a sufferer of an online fraud that has taken your money, you’re not alone. 

Millions of individuals are misled every year all around the world just because they want to get rich, improve their family’s financial status, and live the lives they’ve always pictured. People fall prey to frauds and scams in trying to achieve all of this, resulting in huge financial loss. However, only a few years ago, things were drastically different. You were unable to get in touch with any company for help in retrieving your payments. It’s critical to recognize that internet fraud and funds recovery serve to fill a largely untapped market niche.

man on call

You now have the opportunity to regain control of your situation and create the best possible outcome by recovering your funds. You have fund recovery experts on your side who can assist you in reclaiming the funds you’ve misplaced. Charge backing is one such fund recovery agency, and they employ a complete and integrated recovery technique when it comes to retrieving monies from internet fraud. Time is of the essence in such frauds; therefore, they respond quickly and consistently, maintain complete openness, and keep their clients informed throughout the process for their advantage.

The Process To Report a Forex Scam

They’ll guide you through the process of getting your money back while keeping the same concept in mind.

Review Your Request

Assume you’ve been the victim of a dating scam online. Chargeback’s investigative specialists will begin evaluating and working on your case as soon as you figure it out and alert them via their website’s online contact form. They recognize that internet fraud is a time-sensitive issue; thus, the sooner they begin investigating it, the faster your money will be recovered. According to studies, the scammer is caught 87 percent of the time if the fraud is reported within two days of the incident. Following the case review, a member of their team will contact you to discuss your position further and offer advice tailored to your unique situation.

Evidence Collection
men at dark

Evidence is vital in swinging the case in your favor, just like it is in any other criminal case, so they’ll start gathering evidence and evaluating brokers right away. Members of their team will trace your steps back to the scammer, collecting any and all necessary evidence. Calls, messages, emails, screenshots, billings, bills, and the whole digital footprint are all part of the package. You’ll be working closely with digital analysts at this point to ensure that all relevant evidence is recovered and your case is as strong as feasible.

Building Your Case

Many individuals believe that everything will be alright once the evidence is recovered. That is not the case, however. From here, team members will begin the paperwork for your case. To ensure that the data is not rejected by the financial institutions concerned, it is arranged in an efficient, effective, and viable manner. This needs a thorough understanding of legal documents, which is precisely why charge backing exists!

Recover Your Money
money roll

This is the last phase in the rehabilitation process. At this point, their recovery specialists design a customized approach for resolving the matter, which may include going directly to the fraudster or enlisting the assistance of third parties. They attempt to approach the fraudster directly at first, stating the facts and warning them of the risks. The majority of the time, they are compelled to pay back the money. However, if that fails, their team has a backup strategy in place, which includes financial institutions. They’ve teamed up with payment processors like Transferwise, Paypal, and others to help them recover your funds! They are successful in recovering your payments since they have extensive experience in this industry, and this is not the very first instance they have approached a fraudulent organization.

You have to realize that when it comes to cash recovery professionals, they can do a lot for you that no one else can. While some people begin their investigation by spotting scammers, Chargeback is likely to have already faced these con artists. As a result, they’re making good progress toward the goals you’ve set for yourself. When you give the identity of the broker who scammed you to Chargeback, they quickly know who is to blame. 

This allows Charge Backing to contact the right people and request that your money be returned. When you speak with the cops in your neighborhood, however, you will be bombarded with inquiries since the officers are unclear about where to begin. You don’t want to be in that situation when you’re already frustrated. A lack of power is one of the problems prohibiting customers and dealers like you from pursuing these matters on your own.

signing of check

You are just another person to these internet con artists. When you contact them and ask for your money back, they rarely take you seriously. After a few calls, they’ll take down your phone number and never call you again. They’re busy deceiving someone else while you’re attempting to contact them. Charge Backing, on the other hand, can completely turn the tables in this situation. You may be confident that if you call these fraudsters and inform them how they might be discovered using a professional fund recovery company, they will answer and cooperate. Scams abound on the internet, which is an unfortunate reality. It’s clear that unscrupulous people are targeting our personal information and money, whether it’s forex and crypto scams, romance scams, or credit card theft. Thousands of adverts bombard the typical individual every day, many of which are fake.

It might be difficult to differentiate between what is genuine and what is a scam. People who want to commit fraud from the comfort and privacy of their homes will indeed be able to verify themselves as legitimate brokers or financing professionals as contemporary technology becomes more widely available. Scammers now have more victims to attack, thanks to the rising use of social media. It is almost necessary that you do not fall prey to these con artists. 

Nonetheless, the purpose of charge backing is to help you restore control of your finances so that you can live your normal life, and charge backing can do the job for you. Despite the fact that complete success is rare, financial recovery organizations refund millions of dollars to customers every year. Fraud is a difficult issue to investigate, and even many law enforcement officers have difficulty locating con artists. If you use our services, you will almost certainly have a much better chance of getting your money back than if you go it alone.

CHAPTER 6: Resource Materials & Numbers To Aid in The Process!

digital codes

It’s important to note that not every firm that investigates fraud and recovers assets has the expertise or resources to offer customers a successful outcome. Internal structural constraints, as well as improper methods and pricing arrangements, may inhibit larger consulting firms from “thinking beyond the box,” as President George W Bush put it. When it comes to pursuing similar claims at other firms, a lack of multi-jurisdictional competence and solid ties with legal counsel in other countries may reduce people’s appetite for risk. “Not every fraud investigation and asset recovery firm has the expertise or resources to provide clients with a results-oriented service.” When a bank is considering a fraud investigation and/or asset recovery business, it must ensure that the firm can adapt swiftly to the changing needs that may occur on such projects. It’s also a good idea for the bank to figure out what steps the fraud investigation firm might take to increase the chances of recovery. 

The bank should assess whether the firm is capable of doing a full evaluation of all publicly accessible information about any assets that could be used to settle any court judgment resulting from the possible claim. This is significant not just in and of itself, but it also aids the bank in comparing the worth of the assets it may be able to recover to the expected expenditures. As a result, it will be able to assess risks, the fraudster’s financial capability (or that of his network or other non-bona-fide purchasers of the assets), and the best areas in which to seek recovery.

If you need help in recovering your money from forex scams, then contact TheClaimers to have experts work on your case!

Make a file for investment fraud

Begin by compiling all pertinent fraud documentation into a single file that is kept in a secure location. A contact sheet with the perpetrator’s name, mailing and email addresses, phone numbers, and website address should be included in the dossier. Include the fraudster’s supposed regulatory registration numbers, if you were given them, as well as a timeline of events, which could extend years. The police report, if any, as well as any call notes or other pertinent evidence about the scam, should be included in your file. And don’t forget to include your most recent credit report from each of the three credit reporting agencies.

Be aware of your legal rights

question mark

Victims of crime and scams have rights under federal and, in some situations, state law. To better protect yourself, learn about your rights. The United States Justice Department, also known as (DOJ), provides information on victim rights and financial fraud at the federal level. In addition, the Department of Justice’s Office for Victims of Crime (OVC) has a document called What You May Do If You Are a Victim of Crime that explains crime victim rights and where you can seek help. On a state level, contact your Attorney General, whose contact information can be found at www.naag.org. A helpful “Investor Bill of Rights” is published by the North American Securities Administrators Association.

Report fraud to regulators

Investment product and professional regulating agencies at the national, federal, and state levels may be able to assist. You may profit from reporting the investment scam to as many agencies as you apply. 

  • the U.S. Call (800) SEC-0330 or submit a complaint with the Securities and Exchange Commission. 
  • Call (844) 57-HELPS or submit a tip to FINRA. 
  • North American Securities Administrators Association: (202) 737-0900 or www.nasaa.org. 
  • National Association of Insurance Commissioners: file a fraud report or a complaint with your state’s insurance commissioner. 
  • Call (312) 781-1467 or submit a complaint with the National Futures Association. 
  • U.S. Commodity Futures Trading Commission: (866) 366-2382 or file a tip or complaint. 
  • The FBI, as well as the National White Collar Crime Center, collaborated on the Internet Crime Complaint Center, or ICCC (www.ic3.gov).

It may also be beneficial to submit a complaint with the Federal Trade Commission (FTC), which can be done by calling (877) FTC-HELP or visiting www.ftccomplaintassistant.gov. By filing a complaint, the scam will be reported to the Consumer Sentinel Network, allowing law enforcement to track and stop future fraud. However, this procedure will not result in a criminal probe into your case.

Inform law police about the fraud

police station

It’s critical to report investment fraud to law enforcement to start the recovery process, ensuring that the perpetrators are held accountable and preventing further harm to others. 

  • Local Law Enforcement—File a police report with any local law enforcement agency. 
  • District Attorney—Contact the District Attorney’s Office in your area.
  • Attorney General—To report the scam, contact your state’s Attorney General’s Consumer Protection office and the prosecuting unit. 
  • Make an online tip at http://tips.fbi.gov or find your nearest FBI Field Office.

Think about your possibilities

Assets lost through fraud or other situations when an investor has had a problem with an investment might be difficult to recoup. There are, nevertheless, reasonable techniques to try to recuperate. Most of the time, you can do it yourself for little or no money. 

Make sure to follow up. Review your actions and follow up with any law enforcement agencies or organizations that assist victims after 30 days.

DO YOU SUSPECT THAT SOMEONE HAD SCAMMED YOU?

If you have suspicions of a scam or phishing attack, you can rely on experts to help you with protection, mitigation, and fund recovery. You will feel safe knowing that experts with years of experience will be guiding you!

man-thinking-of-scam-protection.png

Make an evidence file

It is advised to document the circumstances of your case, regardless of the type of scam you’ve encountered. These facts may be useful to your bank or the FTC as you attempt to recover the money you’ve lost to a scammer. Whether it’s a scammer’s email, text, or social media communication, or a fraudulent charge noted on your bank statement, print or document the information and make copies of everything. It’s also crucial to be patient during this procedure. The duration to recover money from a fraudster can vary based on the amount and the facts of the occurrence. There are other aspects to consider, including the type of scam, the quantity of money stolen, the amount of information gathered, and the source of the funds.

CHAPTER 7 : What Are The Chances of You Recovering Your Money?

money suitcase

If you have fallen a victim to any kind of forex scam or investment scheme, you’re probably dealing with the consequences of a stolen identity, ruined credit, and financial loss, as well as a spectrum of emotional feelings, including anger, anxiety, and frustration. While complete financial recovery may be impossible, it is vital that the crime be reported as soon as possible. Reporting any financial fraud, no matter how minor, assists law enforcement, regulators, and government agencies in putting an end to the fraud, preventing future people from becoming victims, and pursuing the criminals responsible. As a rule, thieves will dispose of your money quickly after stealing it, so you may never see it again. However, your turnaround is about so much more than lost money. It’s all about safeguarding your financial future and valuables, as well as figuring out how to recover emotionally from the crime.

Things to think about before employing a third-party asset recovery firm

  • Fees – How much will the service cost? Some companies demand an upfront fee ranging from $2,500 to $10,000, while others employ a sliding scale in which they charge you depending on the size of the initial investment. 
  • What information will you acquire as a result of your investigation? Typically, promises to gather information simply include assembling data from publicly available sources. 
  • What does it mean to provide legal services? These businesses frequently lack the legal skills to advise you on all of your legal choices or to file a class-action lawsuit on your behalf. Most people are unable to reach an agreement beyond a demand letter. 
  • Coordination with state, federal, and provincial authorities — In actuality, these firms file boilerplate complaints on behalf of investors that are devoid of material that a regulator would find valuable.

    These businesses deceive you into paying for a service that your local regulator provides for free. 

  • The promise of recovery — These businesses give investors false faith that their monies will be recovered. In actuality, the investment program is sometimes so old that the company is either defunct or bankrupt, making recovery extremely unlikely. However, charge backing firms have a 99.99 percent recovery rate. 
  • The majority of payment methods utilized by scammers are irreversible (but some can be). While the fraudster is legally liable to the victim, the scammer is usually already gone or bankrupt by the time the victim is discovered. A duped consumer’s ability to track down the fraudster, file a case, and collect a judgment is usually impractical. Victims’ attempt to stop or reverse payment is frequently too late or impossible, with a few exceptions detailed below. 
  • Instead, a consumer’s best bet may be to make a complaint in as many locations as possible, including with the payment system’s bank or firm, as well as with government authorities. The payment provider could be able to assist, and a government enforcement action (against the scammer or even a complicit payment provider or another facilitator) could lead to a recovery for victims.
  • The need for speed is critical. If a consumer reports fast, both to payment providers and to law enforcement, such as the police and the FBI’s Internet Crime Complaint Center (IC3) at ic3.gov, the consumer’s chances of retrieving money are better. It’s also a good idea to collect and add as much paperwork as possible about the payment method, but don’t wait for it before registering a complaint. 
coins counting
Consumers’ recovery can come from unexpected quarters. Even cash can be recovered through the mail on occasion. Gift card companies, money transmitters, the FBI, the Federal Trade Commission, the United States Postal Inspection Service, and others are on the lookout for scammers and may have methods in place to block the consumer’s payment to the scammer or assist the consumer in recovering the consumer’s payment. However, unless the victim of a scam files a complaint with the right authority, this may not be of assistance to the victim. 
 

Apple and other gift card providers, for example, may be able to detect attempts to devalue gift cards via international websites or other dubious areas. Based on its own anti-fraud procedures, the gift card provider can then prevent the consumer from using their gift card. However, the purchase of a gift card may not reveal the name of the deceived buyer to the gift card issuer. A complaint filed with Apple, Google, Amazon, or another gift card provider, along with a receipt and identification of the gift card, may entitle the consumer to a refund of the gift card amount. 

Theclaimers Logo
In bank-to-bank transfers, for example, the FBI’s Recovery Asset Team (RAT) may be able to collect money from a complaining customer by contacting both banks and the scammer. The RAT team concentrates on the more serious losses. 

Scam-facilitating intermediaries like Western Union, payment processors, voice over internet providers, and others have also been fined huge amounts of millions of dollars by the Federal Trade Commission and also the Justice dept. Even if the scammer is bankrupt, the CFPB has a victim recovery fund that can be used to compensate victims. If the scammer’s or payment provider’s records do not identify the victims, the best option for a consumer to be included in a list of reparation beneficiaries in actions taken by these agencies is if the consumer has filed a complaint and identified themselves as a victim at the same time. It’s also vital to file a complaint because a large number of complaints can lead to law enforcement action against the scammer or complicit intermediaries, which could result in restitution.

How Do I Know If My Broker is Legit Now?

A database on the Financial Industry Regulatory Authority’s website offers information about numerous brokers and the firms for which they operate. You can see if brokers are licensed in your state, if they’ve had any run-ins with regulators and if they’ve received major investor complaints.

Key Takeaways: Protect Yourself by Staying Clear of Forex Scams

While traders may blame brokers for their losses and scams, traders are sometimes to blame. Before opening an account with a broker, a trader should do their homework and perform research on the broker. If the research is positive, a modest deposit should be made, followed by a few trades and then a withdrawal. If all goes well, you can put down a bigger deposit. If you are already in a bad situation, you should check to see if the broker is engaging in illegal activity (such as churning), ask for answers to your inquiries, and/or report the scammer to the SEC, FINRA, or any regulatory organization that can take action against them.

Keep yourself safe. 

  • Make your own checks to make sure that any investment opportunity is legitimate. 
  • Take basic precautions to guard against identity theft. 
  • Make sure the privacy parameters on your social media accounts are up to date.

Be cautious 

  • Unexpected communication should be avoided, especially if you have responded to something on a website or social media platform. 
  • If you’re solicited via social media, don’t trust any investment offer. You have no idea who you’re working with. 
  • Before you invest, always seek independent financial counsel. 

If you believe you’ve been duped, 

  • Don’t send any further money to the company. 
  • Notify your bank or financial institution about it. 
  • Be aware of follow-up scams or offers to help you get your money back.
  • Report it to ASIC or your local police department. 
  • If you need assistance, call Lifeline or the National Debt Helpline. 

Given how quickly online scams are on the rise, it is critical to protect your personal information, money, and valuable assets. Do not be alarmed if you have been a victim of internet fraud. With TheClaimers you can work with our team of professionals to recover your stolen money, no matter how large or small the amount was.

do you need help?

A lot of those who contact us have questions and concerns about their personal and business data being compromised. We aim to arm you with the legal and technical know-how in the fight against scams. Also, we will be able to refer you to top scam recovery agencies.

Please fill up the form. Rest assured that our support team will get in touch with you

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