Foreign exchange, or ‘forex’ trading, poses significant risks, with internet fraudsters taking advantage of the turbulent market to steal investors’ money. As an independent team of journalists, we offer specialized investigation services to help victims of forex scams identify the perpetrators and recover their losses.
A global team in currency fraud investigations, drawing on a global network of whistleblowers, expert witnesses, and foreign partner organizations. With over 10 years of evidence-gathering experience, our licensed network of investigators deciphers fraudulent forex trading activities to identify the criminals and money trails behind them.
This useful insight and information can be used to help you recover your money and convict the criminals who stole it.
Being a victim of a currency scam
Although forex trading is not always fraudulent, this highly technical industry is rife with financial scams that prey on investors at all levels.
Forex scammers use call centers in Cyprus, Israel, Ukraine, UK, Bulgaria, Thailand, the Philippines, Indonesia, Malaysia, Cambodia, and India. These con artists entice investors with the promise of big returns and specialized support, presenting themselves as industry experts while having little to no experience or intention of trading foreign currency.
Instead of investing the money, these crooks move it through a complicated money trail for their personal gain. Your funds will have vanished by the time you realize the trades are bogus.
If this seems all too similar, please call our Forex scam investigators as soon as possible to find out how we can help.
Avoiding common forms of forex scams
Scams involving signal sellers
Signal sellers are managed account firms, retail firms, asset managers, or individual traders who provide a software system that alerts traders when it is a good time to buy or sell a currency pair. These recommendations are based on professional insights and are intended to assist inexperienced traders in earning money in exchange for a recurring charge.
While some legal signal vendors perform trading activities as advertised, it is important to conduct your own research. Otherwise, forex scammers may take your money and run.
Signs of a Forex signal scam
- Subscription fees: If you are asked to pay daily, weekly, or monthly fees to access this ‘privilege,’ proceed with care. Never give your credit or banking information without first validating the trader’s regulatory status.
- Broker-specific indicators: Avoid signal sellers who give trading signals tied to a specific broker. The vendor may offer biased recommendations in order to collect a commission charge, regardless of what is best for you.
- Unsubstantiated findings: False testimonials from seemingly credible sources may attempt to induce action, despite the signals failing to predict profitable transactions. If there is no documented track record to back up the reviews, be skeptical.
- Inflated accuracy: Such statements are a red flag because no trader or technology can reach such precision. Always compare previous signals to market data from the past.
Robot scams
A Forex robot is a software program that uses algorithms to purchase and sell currency automatically. Independent bodies evaluate the parameters and optimization codes used by legitimate forex robots to confirm their legitimacy. These forex robots are frequently offered as value-added by legitimate brokers.
However, some con artists sell bogus robots that trade at random. These untested systems, despite claiming to be able to make you money around the clock, can instead cause you to lose your hard-earned cash.
Signs of a Robot Scam
Exceptionally high returns: Forex robots can offer methods that achieve a percentage growth rate of thousands of percent after only a few years. Keep an open mind. This figure may only reflect completed trades. Your earnings could be lost if the system has open trades and the stop losses are activated.
Set scalping tactics: Some forex robots trade for small earnings using a scalping technique. Technically, this can result in a seemingly high win rate, inflating results while leaving your earnings vulnerable to tiny swings in market conditions if things go wrong.
Scams involving forex-managed accounts and brokers
Some forex scammers prey on inexperienced investors, hoping for an expert to manage trades on their behalf. The fraudster frequently demands a fee or commission payment in exchange for their expert services while posing as an investment agency that provides managed FX accounts. However, instead of increasing your profits, they claim fraudulent profits and deplete your account.
A scammer may also pose as a registered forex broker in order to defraud investors of their money. They may impersonate a real forex broker’s identity and registration number, even establishing a nearly identical website to entice you and convince you to fork over your money.
Ponzi and Forex pyramid schemes
Forex pyramid scams pose as investment groups, enticing victims with access to unique trading advice in exchange for a membership fee. Existing members are offered a commission for bringing in new members, which moves them up the ‘pyramid’ of promised riches.
Similarly, a forex scam might take the shape of a ponzi scheme, which advertises forex funds that guarantee a high return in a short period of time. Typically, the scammers simply ask for a small initial investment and may even pay the first few investors their promised profits to make the plan appear successful. These investors are then persuaded to recruit their friends and relatives.
Any dispersed earnings in both pyramid and ponzi schemes are derived from membership fees rather than forex trading profits. The investment does not exist in any situation. When new recruits begin to diminish, the original masterminds shut down the plan and take your money.
How to Identify a Forex Scam
Guaranteed profits
The promise of endless returns with little or no financial risk is typically the most visible red sign of a forex scam.
To begin with, 100% guarantees are just not attainable – and if they were, traders would keep this winning method to themselves.
Furthermore, successful forex trading necessitates knowledge and perseverance. It is not the path to quick and easy profits. If you are assured differently, walk away and conduct your own investigation.
Before depositing a penny, a novice trader should approach each possibility with caution, independently analyzing the data and testing their own functions on a demo account. This can help you avoid being a victim of a currency scam.
The basic message is that if something seems too good to be true, it typically is.
Inadequate regulatory information
Forex scams are frequently orchestrated by unregulated brokers who are not required to report to a regulatory body. In other words, they can take your money by using deceitful tactics such as citing system flaws.
Many forex scam brokers, on the other hand, are regulated by foreign regulating bodies with little scrutiny. As a result, it is vital that you only work with brokers who have a solid reputation and are well-regulated, such as ASIC in Australia.
Examine the bottom of each page on your forex broker’s website to determine their regulatory status. Genuine forex brokers always demonstrate their legitimacy online, since they are legally compelled to include certain risk disclaimers and regulatory information in the footer of their website.
However, because some forex scammers may add misleading information in order to appear legitimate, it is strongly advised that you authenticate their registration with the relevant government by seeking a list of authorized organizations.
Outstanding fraud investigations
For over 10 years, our cyber detectives, analysts, and researchers have been accumulating evidence to track down fraudsters all around the world. With our superior investigative abilities on your side, you can increase your chances of recovering your losses.
There are connections in every country. Our team has vast experience collaborating with state, federal, and international law enforcement. Our investigators can also work with local and international correspondent lawyers to uncover money trails and hidden assets on any continent.
Effective methods
Our investigators employ a variety of techniques to complete comprehensive investigations into even the most complicated forex scams operating from foreign nations, including direct access to local databases, expert witnesses in cyber fraud, cybercrime, and cyber forensics, and a network of confidential informants.
Evidence that can be used
Our team will compile a solid brief of evidence for use in criminal proceedings in the appropriate jurisdiction, regardless of where your investigation takes place. You will be able to register complaints to prosecute the offender and take steps to recuperate your money if you have proof of fraud and the identities of the persons involved.
Our investigators have played a critical role in assisting foreign law enforcement agencies in cracking down on organized cybercrime groups, supplying crucial evidence that has led in major police raids, arrests, and indictments around the world.
Every investigation is conducted by our dedicated fraud detectives with unwavering professionalism, compassion, and discretion. To preserve our clients’ privacy, we encrypt all personal data and will only ever reveal case information with their permission.