What To Do if You’ve Been Scammed by a Forex Broker
If you’ve been the victim of a forex scam, your first thought is probably: “What do I do now?” Accepting that you may have been scammed by a forex broker is the first difficult step in your journey toward possible resolution.
In this guide, we’ll cover a range of scenarios that may be applicable to your situation. We’ll also outline some potential actions you can take if you suspect you have being scammed by a forex broker, and go over some helpful tips for safeguarding yourself against forex scams in the future.
1. Avoid sending more money.
This is the big one. Operators of forex scams will do their best to manipulate you, and will often continue to do so even after you’ve already lost money to their scam. If you have any reason to suspect that you’ve been scammed out of your money, remember to stay calm, cut off their flow of money, and start looking into recovery options.
2. Gather as much information as possible.
If you suspect that you’ve been scammed, you’ll need to gather as much detailed information as you can about the broker, any individuals you’ve been in contact with, and the specifics of the suspected scam.
Start writing down this information right away:
- Website(s), platform(s), documentation, and any provided terms and conditions.
- Documented exchanges – email, text, messages, etc. You’ll want to note the names of any representatives you communicated with, as well as all email addresses and phone numbers.
- The scam’s purported address and country of operation.
Scammers may use fake names, fake addresses, and fake pictures. They may even be impersonating genuine brands (and real people – I’ve been impersonated countless times by fraudulent social media scammers).
3. Hire professionals.
Depending on the amount of money you have invested, it may be worth hiring legal counsel such as a private investigator or securities attorney. In many cases, however, this strategy may not be cost-effective. If the forex scam is operating from another country, for example, hiring legal counsel and chasing them down will likely prove to be expensive.
4. Identify the type of forex scam.
There are a handful of common forex scams, and it’s important to identify how you’ve been scammed. Was it an unregulated forex broker? Or maybe it was a clone firm that created a fraudulent website imitating a real broker? Were you conned by a social media influencer or impersonator?
5. Report the scam to the relevant authorities.
If you have exhausted all the options listed above, contacting the appropriate authorities may be your next step – though they may not always be able to assist you. For example, if you reside in Norway but you suspect you were scammed by forex broker located in a different country, it is unlikely that the police or financial markets regulator in the U.K. will be able to assist you. Nonetheless, it is important to provide the authorities with all the information you’ve gathered to increase the chances of a more fruitful investigation.
How to file a complaint if you were scammed by a forex broker
In the event that you cannot resolve your complaint or grievance with your broker directly, you can file a complaint with your local regulator.
If you are a U.S. resident and you believe you’ve been scammed by a U.S.-based scam forex broker, you can reach out to the fibi , as wire fraud is a federal offense (among other types of internet crimes ). You can also seek legal counsel, file a complaint with the CFT for forex-related scams,
Can I get my money back if I’ve been scammed by a forex broker?
Though it is technically possible, it is exceedingly rare for traders to recover funds once they’ve been scammed by a forex broker. If you are the victim of a forex scam, recovery will depend on a number of factors unique to your situation (such as your location and your country’s regulatory body) and the circumstances of the potential scam broker (such as the alleged scammer’s location and any applicable laws and regulations). In all cases, you should try to explore all available options for retrieving your money before pursuing potentially costly legal action.
How do I come back if I was scammed by a forex broker?
After getting scammed by a forex broker or bogus investment, it may take time for you to recover – financially, mentally, and emotionally. Should you decide to start trading forex again, it is crucial to take things slow, do plenty of research, and be sure to only use trusted financial institutions that are well-established and highly regulated.
Whether you have been scammed, or you are just getting started on your forex trading journey, here are some important questions to ask about the broker or financial institution so you don’t get scammed by a forex broker :
- Where is the company headquartered?
- What is the company’s official website? Can the website be verified?
- How long has the company been in operation?
- How many international entities are associated with the brand, and which entity will I be dealing with? Is there an associated parent holding company?
- Is the entity that will be holding my account properly licensed? If so, which competent authority (or authorities) have licensed the firm?
- Am I being contacted directly by a representative that uses an email address with an official company domain?
Trusted Brokers
The best way to avoid forex scams is to use brokers that are highly regulated and licensed in multiple international jurisdictions.
If you are scammed by – or find yourself in a dispute with – a broker that lacks proper regulation, you often have to take steps in recovering your funds. However you can take the step of hiring an expert to help recover your funds .
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