Being scammed by a shady forex broker is a nasty situation for any individual who encounters it. Unfortunately, many decent people end up being trapped by the clutches of a scam broker and constantly persuaded by imaginative trading offers. Being a victim of a forex scam is a difficult situation and because of that, multiple issues need to be taken into account.

Scams in the industry not yet vanished

The technological advancements had enabled the broader public to get involved in the financial markets, but at the same time, making it much easier for scammers to develop appealing offers to trap inexperienced individuals and their funds. Not all people know how to spot a forex scam and if they have high expectancies from trading, the illusion of high returns will cloud their judgment.

A report from the Independent dated back in 2019, highlights how consumers are being attacked from all angles on an unprecedented scale. As a result, campaigners have issued demands for the public authorities and the banking industry to take action, but scammers continue to use ingenuity, regardless.

Scammers create more complex schemes

Even though developed countries had taken to steps to combat forex scams, fraudulent companies had found new ways to operate under the radar. They generally move headquarters into a tax haven or low-regulated small state and conduct their business via an off-shore entity.

This makes it even more imperative for forex traders to check for detailed information about the broker they’re about to work with (mother company, headquarters, previous background), and most importantly the regulatory status of the brand.

Usually, a trusted broker is authorized and licensed by major financial agencies around the world, proving to have high work ethic standards. But not all people consider these matters, so in case you are one of the victims to a scam, here are three of the most important steps you should immediately take.

Steps to take when scammed

Step #1 Look for other customer’s opinion on the broker

First and foremost, it is very important to know for sure if you are dealing with a fraudulent company. Not all traders know how to spot a forex scam and because of that, they need to make some research first. The best way to find that is by looking for other customers’ opinions on the services provided by the broker. It is important to see what registered clients are saying, because that way, you will get reliable feedback.

Fortunately, there are multiple forums and websites where forex traders share their experiences with their brokers. A forex scam will usually get very bad ratings and customers will complain about poor services, the inability to make withdrawals after finding hidden clauses in the terms & conditions, and bad communication with the broker.

It is important to look after trusted websites that require all “reviewers” to share their personal data and trading account number. Some reviews are actually fake and designed to make the trading services better, when in fact, they’re not.

Step #2 Take a firm approach when talking to the broker

After you’ve taken the first step and the result is that many other people are complaining about the broker then it is very likely you are dealing with a forex scam. As a result, you need to take action fast to withdraw all the funds from your trading account. In case you’ve applied for a deposit bonus, that will be difficult, considering there are terms & conditions attached and you will need to meet a certain trading volume before making any withdrawals.

If that’s not the case and your broker does not want to process the withdrawal, it is important to take a firm stance, impose a deadline by which the money will need to be sent. Notify your broker you’ll take legal actions against it, in case that won’t happen.

Step #3 Ask for specialized help

The last and final step will be required if you don’t manage to get your money back from the forex scam. There are multiple ways to ask for help, including from local authorities responsible for financial oversight (this will depend mostly on your country of residence), and from specialized law firms that generally work with victims of financial scams (forex, Bitcoin, fake ICOs, etc.)

They will know how to take more aggressive actions against the forex scam and with more pressure on its shoulders, the fraudulent company will be incentivized to return the funds, in order to avoid more damage down the road.

Final Thoughts

Dealing with a forex scam is a painful experience that beholds an important lesson to traders.  It is important to take precautions and work with solid trading brands, but if you got stuck into fraud, the information we’ve provided, and the three important steps should be of great help in getting you out of trouble. Keep in mind that forex trading is a challenging activity and in the retail sector, there could be many conflicts of interest arising.