A common form of trading scam is forex fraud. The perpetrators of these schemes defraud their victims by offering them false promises. This type of scam became a widespread problem in early 2008, when the market was flooded with counterfeit currencies. Michael Dunn, a former commissioner of the U.S. Commodity Futures Trading Commission, says this type of scheme carries the risk of causing huge losses. Traders must be careful to avoid falling victim to such fraud schemes.
When you are a victim of Forex fraud, the first step is to report the scam to the CFTC. If you have lost money, you should use a credit card to make a chargeback. This will enable you to reverse payment. Be wary of salespeople who are aggressive and try to manipulate you. They may not be a scam but they will rip you off! Regardless of how convincing a salesperson seems, they’re probably a scam.
In the majority of cases, scammers contact their victims in several ways. They may contact their victims via cold calling or through emails. They will often speak in high-level business terms and insist on payment immediately. Moreover, they will tell you that their investment is profitable because they have excel tables that prove it. However, these are only indicators of scammers. Ultimately, it is essential to seek out a legitimate forex trading broker who has a good reputation.
If you believe that you are a victim of forex fraud, do not hesitate to report it to the appropriate authorities. A scammer will most likely hide all the information they need to make you a winner. If you lose money, use a credit card to reverse your payments. Never trust a person who promises you the return of your money. If the offer is too good to be true, it is a scam. If you are not sure, contact the broker to see if it’s legitimate.
A forex fraud scam is similar to a casino scam. An account manager will lure a single person to invest in the forex market and promise high returns in a few months. They will promise 20 to 30% returns or even more, but they will most likely not follow through. They will tell you to keep your money in a mattress and reinvest the profits from each month. While this type of fraud can be extremely lucrative, it’s important to be cautious.
Some people invest in forex accounts to profit from it. However, the only downside of such a scam is that the money you invest will never be returned to you. In most cases, a forex account manager will simply hide the money in the mattress for 10 months and wait for it to grow. These scammers are not able to refund the money they have deposited in their accounts, and they won’t do so in their Forex trading.
Another common forex scam is the share scam. The investor is tricked into buying shares in a worthless private company, and is promised a huge increase when the company goes public. This is a scam, but it’s also a very common one. These fraudulent brokers usually do not have capital to cover all their trades. Hence, there is a risk of losing the money you invested. So, it’s important to avoid these forex brokers.
When you have been a victim of forex fraud, it’s important to find a credible and legitimate broker. Many of these brokers are fake, and they will not pay you a cent. Instead, you should avoid any scam broker that claims to have an A-rated rating from the Better Business Bureau. The BBB has the name of the broker, and the reputation of the company. Its performance and reliability will reflect the level of trust you have in the company.
While Forex scams aren’t the only form of forex fraud, it’s best to be aware of the signs of a Forex scam before you commit to a transaction. The most common indicator of a forex scam is an exaggerated return on small investments. These companies are likely to be scams that will attempt to trick you into investing more money than you can afford to. But beware of brokers that insist on sending you more emails, and ignore your requests.