As of April 2019, the spot forex market, which includes currency options and futures contracts, traded over $6.6 trillion per day.
With such a large quantity of money moving about in an unregulated spot market that trades instantly, over the counter, and with little accountability, forex scams entice unscrupulous operators to make quick money. While many once-popular scams have faded away thanks to the Commodity Futures Trading Commission’s (CFTC) aggressive enforcement efforts and the founding of the self-regulatory National Futures Association (NFA) in 1982, some old scams persist, and new ones keep cropping up.
Unauthorized forex trading and brokerage services are rapidly targeting consumers with offers to trade in foreign exchange, contracts for difference, binary options, Crypto assets, and other commodities. Criminals use forex trading scams to dupe consumers into investing in bogus foreign currency schemes. They frequently advertise once-in-a-lifetime investment opportunities where traders can profit handsomely overnight. Scammers frequently vanish after receiving payment, leaving investors with nothing.
They promise extremely high returns and guaranteed profits, either through a managed account in which the firm trades on the investor’s behalf or through trading on the firm’s trading platform. Most customers say they received some returns from the company at first to create the impression that their trade was successful. They will then be invited to invest additional money, but their account will be suspended at this point or shortly after the returns stop, and they will have no future interaction with the firm. Many phony trading and brokerage firms will use the names, ‘firm registration numbers’ (FRNs), and addresses of FCA-licensed firms and persons.
This kind of firm is called a “clone firm.”
Scammers then provide their own phone number, location, and website address, often alleging that a company’s contact information on the Register is outdated. Scammers may also pretend to be an international company that does not necessarily have their entire contact and website information included on the Register. Scammers may even duplicate an authorized firm’s website, adding minor modifications such as the phone number.
How To Spot Scams in The FX Market
Keep an eye out for these telltale indications that can help you spot a forex con and avoid becoming a victim.
- Unsolicited offers: If you’re contacted about a currency investment opportunity out of the blue, it’s probably a fraud. If they ask for your personal information or money, don’t give it to them.
- ‘Risk-free’ investing: Investing always involves some risk; therefore, any company that claims to offer risk-free investment options is most certainly a hoax.
- Impossibly high returns on your initial investment: Forex scammers usually promise unrealistically large returns on your initial investment. Any company that promotes get-rich-quick investing opportunities is almost certainly a rip-off.
- Time pressure: If a corporation tries to rush you into making a decision, it’s probably a scam. To urge you to contribute right away, some con artists offer perks or discounts.
- Social media advertisements: Scammers are increasingly using social media to propose fictitious investment possibilities. To entice buyers to invest, they commonly use photos and videos of high-end items.
You should report the scam to authorities like the Action Fraud and the Financial Conduct Authority (FCA) so that they can investigate and, if feasible, reclaim your funds. This may also assist others in avoiding becoming victims of the same scams. You should also contact TheClaimers funds recovery agency to have their experienced team assist you in recovering your funds.
With TheClaimers you won’t have to look elsewhere for a funds recovery company. They are specialists in getting your hard earned cash back. Don’t wait or hesitate to contact them as they reply as soon as possible. So contact the TheClaimers today about being scammed and get your money back.