For all that trading in forex pairs can be highly lucrative, there are – regrettably – always going to be risks. These risks do not start and end with the decisions you make during trading. Sadly, there will always be scams and hoaxes out there, which may result in financial loss. With that in mind, is it ever possible to get money back from forex scams?
The answer is certainly ‘yes’ – but there is never any guarantee of remedial action that can be taken. Therefore, it is always more prudent to know how to start spotting forex fraud before getting deeper into the process. Let’s examine this phenomenon in a little more detail.
What should you do if you’re a victim of forex fraud?
If you know that you’re a victim of a forex scam, the first point of action should be to report the broker or brokerage you’ve been working with. They should be held accountable – should they be regulated. In fact, one of the best ways to avoid fraud in the first instance is to always trade exclusively with regulated brokers.
Beyond this, you should make sure to inform your bank or bookkeeper as soon as you can that you believe you are a victim of fraud. Steps to take here will, of course, ensure that any cards or associated assets are frozen to prevent access to unauthorized parties.
Once assets and funds are frozen, you can start your journey towards potentially claiming back money you have lost. This may require you working with a regulatory body, for example, which oversees brokers –
however, processes can and will vary when it comes to claiming back lost funds.
How do you seek compensation for forex fraud?
At the time of writing, the main route for compensation for forex fraud appears to travel through class action suits. Therefore, a more worthwhile cause will be to prepare yourself in case of potential fraudulent activity. Knowing how to spot forex fraud before you choose a broker or start trading in pairs will – of course – prevent you from having to pursue compensation avenues in the first instance.
That said, if you are the victim of what you believe to be forex fraud, it is still worth pursuing through the relevant channels. Staying silent will only help to propagate the idea that fraud victims have no options once they have lost their money – and ultimately, if your case is legitimate, you are, of course, entitled to pursue what is due to you.
However, given the complexity of forex – and the burden of proof – you will need to keep an open mind regarding potential fraud cases. Therefore, be sure to assess your case clearly, and to ensure you can back up your claims should you be asked any questions. Compensation requests on the back of fraud claims are – of course – extremely serious, in which case, honesty is paramount.
Prevention, as they always say, is better than any cure. Those traders who have suffered losses through fraud will likely always think about what they could have done differently.
How do you prevent forex fraud?
Protecting yourself from forex fraud can and will vary from case to case. However, it is worth being cautious with brokers who promise bonuses that will need capital release ahead of time. What’s more, if you are already working with a broker and they are unclear about why you experience losses, you could be looking at potential fraud moving forward.
Of course, a telltale sign that you are working with a fraudulent or unscrupulous broker is that they are simply unregulated. Always be sure to ask about their regulation and protection for you before you begin any trading. If any terms and conditions or clauses appear a little odd or don’t feel legitimate, you must always trust your gut instincts.
It’s also excellent practice to ensure you have multiple lines of contact for your broker and that you can retain access and authority over your accounts. A legitimate broker will always be willing to provide you with the necessary controls and the power to manage your money.
Unfortunately, realizing you have been the victim of forex fraud can occur at a moment when it’s too late to take action. Sadly, relying on compensation to help heal fraudulent activity can be short-sighted in the world of forex. Therefore, always ensure you know the signs of a scam before you get too deep into the process.