Forex Scams

Everything You Have Been Wanting To Know About Forex Scams 

Forex, or the foreign exchange market where investors and institutions trade currencies, is the biggest financial market in the world. According to a 2019 Triennial Central Bank Survey report, around $6.5 trillion trades each day on the forex markets. However, while forex trading is legal, the industry is rife with scams and bad actors. Investors need to do their due diligence before venturing into what can be a Wild West version of global financial markets. It will take a trained eye to see a forex scam because of its complexity. But don’t worry. We are here to help you identify this type of scam, so you do not fall victim. 

What is Forex Trading?

Forex, also known as FX trading, simply deals with the fluctuations in exchange rates, and if you are planning to invest in it, you need a forex brokerage account. The forex market is an international market where currencies are traded 24 hours a day, five times a week, Monday till Friday. No physical exchange occurs; hence all currency trading is done over the counter (OTC) (as there is for stocks). Making predictions on currency values to generate a profit is known as forex trading. 

Thus, in simpler words, forex trading is exchanging one currency for another. Currency exchange helps with international travel, conducting international business, foreign trade, etc. Trade flows economic, political, and geopolitical developments, all of which affect forex supply and demand, influence the value of a currency pair. This results in daily volatility, which may present new chances for forex traders. There are 180 currencies in the world. The need to exchange the equivalent value of one currency for another is why forex trade exists.  Unfortunately, the forex market is unregulated, which has allowed the infiltration of scammers. The forex market is the largest globally because it comprises every country’s currency. Today, Forex Scams also offer traders the thought they are investing in stocks, commodities, and other securities. But, sadly, they are not investing in anything but merely lured into a forex scam.

Brokers aren’t usually the ones that represent Forex scammers. Individual actors without firms who position themselves as broker companies are more likely to be involved. They have frequently seasoned Internet users capable of fabricating misleading information on the sites they construct. The owners of such scam websites do not have a license and are hence unregulated. They may not even have a fundamental understanding of the Forex market. However, not everything is clear to a beginner trader who does not have a background in economics or finance. Fraudulent promotional schemes and overstatement of returns give rise to forex scams that can prove extremely dangerous. Scammers are often individuals without companies pretending to be broker companies. Without any license, education, and even basic knowledge of the forex market, they can suffer huge losses worth millions with fabricated false information. However, identifying forex scams today is not as difficult as it used to be. If a company promises you big profits, has fake ratings, seems like a dubious business with no reputable reputation and unprofessional practices, know right away that it’s a trap! 

The Effects of Forex Scams on Victims

Forex scams have taken an emotional toll on victims to a great extent. According to a Financial Industry Regulatory Authority Foundation report, almost two-thirds of fraud victims experience at least one severe emotional consequence, including stress, insomnia, anxiety, and depression. It not only affects you financially but emotionally and mentally as well.

Fortunately, in current times, after being scammed, you might be able to get your money back with the legal and emotional support available through the recovery firms. We do not take the emotional impact of scams/frauds lightly. Victims of fraud go through intense shame and guilt for being so naive, and most of them end up in severe depression because of the loss. If you’re a victim, know that what happened is not your fault and the Global Payback is here to help you get back on your feet. We at Global Payback will work diligently with our skilled staff and technology to prepare legal papers to reclaim your monies. Don’t worry; we’ve got you!

Types of Forex Scams to be Aware of These Days!

As mentioned earlier, the forex market has no international regulatory body (or bodies), so there has been an alarming rate of scamming activities. There are regulations related to Europe, American treaties, and Asian ones. Still, there is no global authority to handle international forex scams due to the difference between the client location, the broker location, and the sales office performing the fraud. So, unfortunately, you are vulnerable as a forex trader. However, you should be aware of some signs and types of forex scams so you don’t become a victim.

Robot Trading Systems

Who wouldn’t want to be sipping mimosas on the beach while they keep getting richer due to their passive incomes? I would. You know it’s true, and the forex scammers realize it, too, so they use the allure of earning extra money on the side as a sales pitch. In the robot trading scam, the scammers deceive you into thinking that their trading system is fully automated and artificial intelligence (AI) or robots will be breaking their backs for your success. It sounds like a quick, effortless way to make money, right? But, as much as robots may increase your chances of making a profit, these systems have not been tested, and there is no evidence of their legitimacy.

An old and new deception presents itself in some sorts of forex-developed trading methods. These con artists brag about their system’s ability to generate automated transactions that create significant sums of money while you sleep. The technique is now called “robot” because computers entirely automate it. Most of these systems have never been subjected to a formal third-party examination or testing.

Brokers that do not allow money to be taken out from investor accounts or trading platform troubles are examples of other scams and warning signs. Is it possible to enter or exit a transaction during a period of turbulence in the market, such as after a financial statement? Red flags should display if you are unable to withdraw funds. The warning signs should flash again if the trading platform does not perform according to your liquidity expectations.

Binary Options Scams

The forex market is volatile, and even the best computers in the world will not be able to predict a crash. Therefore it is unwise to place a bet on a system to decide your money and investments. Computers are not mistake-proof, so it will be best to take a second look if any forex trading company presents this idea. Binary options are a gamble. You either win or lose. These are called binary options because there is no other settlement possible. It has become an increasingly popular financial instrument because of its simplicity. It allows traders/investors to gamble on whether an asset’s price will go up or down. With this investment, you know what you stand to gain before trading.

Investors should be careful of fraudulent promotion strategies involving binary options and binary options trading platforms, which can defraud them of their money. Working with binary options is similar to trading in foreign currency, although the entire process is significantly less complicated in this instance.

It is common to see binary options fraudsters run social media ads that link to credible, legit-looking websites. The scammers will claim to be an international firm with a presence globally. Once the scam firms gain your trust, they will manipulate the system to distort prices and payouts. They will then close your trading accounts without paying your money.

The typical binary options scam involves the ongoing distribution of “super-profitable” and “win-win” trading signals to defraud investors. When perpetrating binary options scams, they set up a considerable number of websites on which they attract customers to become familiar with their product in an unethical manner. Its purpose is to attract the attention of unsuspecting or inexperienced traders. Brokers who engage in binary options fraud frequently provide a 100 % assurance that the prospective client will make a substantial profit from their (the broker’s) approach to binary options. They even attempt to demonstrate this by publishing images of the page containing the income collected from transactions carried out with the assistance of these programs on social media.

On closer inspection, the vast majority of these self-proclaimed evidentiary systems are discovered to be a fluke. They promised foolish clients the moon and the stars and ideal trading conditions, but their real purpose was to deceive the trader, steal his money, and rapidly move on to the next naive target, which they often did. An individual may thus contact customer service to express his dissatisfaction and demand a refund of his account deposit. Still, none of these hands-on efforts will be successful because no one coerced the client to make the purchase. In most cases, fake websites conceal themselves behind the identity of some fictional persona.

Signal Sellers

Another form of a scam is the ‘signal seller scam’ they are present online and present themselves as companies or individuals who can help you in trading and offer you a recommendation on where to bet and when to bet with the help of their charts and agendas, they often justify themselves with being professionals, experienced and verified. But many of these scammers are waiting for you to lend them some money, and they disappear with it. 

Signal sellers act like ”forex trade consultants.” They advise individuals and companies on the perfect time for currency pair transactions. They will charge an amount of money as a ”consultant fee,” which may be a one-time or a recurring payment depending on how often you want to engage their services. They will make guarantees of a trade secret they are willing to share, and more often than not, these ”trading tips” are never fruitful.

How Does It Work?

Signal sellers brag about their comprehensive trading knowledge and abilities and testimonials from others who attest to the person’s abilities as a trader and friend and the substantial wealth they have amassed for them. The inexperienced trader must hand over some cash in exchange for trade tips.

Many signal-seller con artists 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 honest signal sellers carry out trade operations according to plan, it is prudent to be wary. Many signal-seller con artists 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. 

Hence, the signal seller scammers, like other scammers, pose as legit signal selling agencies with fake reviews and a website detailing the enormous profits they have made for past clients. Once they can gain your confidence, they provide you with information that never yields any results or disappears. These scammers do not have the expertise to be signal sellers, so take anything they say with a grain of salt.

Multi-level Marketing Forex Scams

Multi-level marketing is a widespread occurrence in the financial markets. Brokers and investment platforms often use certain multi-level marketing elements, and sometimes they even build their strategy around it. However, It is prevalent among fraudsters and is a prime tool to pull on the emotions of anxious traders. Criminals motivate clients to spread information in any possible way, persuade them to invest large sums, and promote unrealistic earnings. In this case, people often avoid caution and then lose their money.

You are probably familiar with how multi-level marketing (MLM) businesses work. Unfortunately, some scammers have gotten the idea of using the MLM business structure to defraud unsuspecting victims of their investments. Scammers from forex MLMs lure targets to pay a monthly fee in exchange for daily trade signals and forex educational materials. You will also be tasked with recruiting new members for a commission. One tell-tale sign of MLM forex agencies is the focus on getting more people and less on trading. Also, you will have to pay a fee to join the business. Insane!

Fake Forex Funds

Fake forex funds are becoming an increasingly popular method forex scammers are adopting. These funds assure you of huge returns on low-risk investments. They will show you referrals and financial quotes of large annual returns to prove that they are legitimate. But, of course, it is always best to stick to less risky investments.

Signs That Your Forex Trader May Be a Fraud

1. Suppose someone sounds too optimistic and ambitious about projected profits. In that case, it may be too good to be true so tread cautiously. In fact, a classic indicator of a forex fraudster is exaggerated claims of massive returns on modes of investments. It is most likely a scam if you are promised guaranteed high returns. The success of your investment is highly dependent on a highly volatile market. You may receive returns quickly, or you may not. But a company that purports consistently high returns is giving you false claims because it is not feasible in the foreign exchange trading market.
2. Suppose the scammer refuses to give you background information or divulge detail about their profit and loss margins. In that case, it is most likely a scam. Also, remember that Forex scammers take advantage of their knowledge of the forex exchange market by using complicated jargon when preying on their victims. Terms like risk disclosures and terms of use are often used to limit their liability should investors suffer losses along the way.
3. Suppose you are being pressured to invest in something without time to ponder. In that case, it is a scam because most legit investments can wait for you to take as long as you want before investing.

Global Payback Is Here To Help You Recover Your Stolen Amount! 

If you or someone you know is a victim of forex fraud, we ask that you act fast by contacting us because the time frame is essential, and every day counts. Luckily for you, we have wealth recovery professionals on our team who know exactly how to get your money back in the shortest time frame. So contact us with details of your transactions and dealings with the scammers and leave the rest to us. We will help you recover your funds and get your life back.

One should always be very vigilant and careful in forex trading. Do not let yourself fall prey to these fraudsters and take away your money. I hope you guys find this article informative, but if you ever fall for a trading scam, seek help from us at Global Payback; we provide you with the opportunity to regain control of your situation and create the best possible outcome by recovering your funds. We will try our best to assist you in reclaiming the funds you’ve misplaced by employing complete and integrated recovery techniques. Lastly, our team always responds quickly and consistently, maintains complete openness, and keeps its clients informed throughout the process.