Forex Trading Scam – Is It Possible To Recover Money From A Forex Scam?
The growth of social networks and internet advertising makes it impossible to halt fraudsters. More recently, several people lost their cash in FX trading thanks to a UK-based Instagram influencer using a dubious broker. Given the extravagant lifestyle and antics displayed by such celebrities, who then explain how this and that trading options has earned them millions, this is not unexpected.
If you were a sufferer of a foreign currency exchange scam, you probably want to know how to get your money back. Specialist service providers assist fraud victims in reclaiming their funds from a brokerage firm. For a price, these money-recovery businesses investigate the claim, compile proof, challenge the agent, and get the money back.
There are several actions you may take to attempt to retrieve the lost money by yourself though, before engaging a recovery business. The five ways to recoup the lost funds are listed below.
Try To Communicate With Your Brokerage To Identify The Issues.
Due to a badly thought out trading style and an inadequate understanding of the way the fx market operates, inexperienced forex traders frequently lose their money. Angry traders may accuse the brokerage of their misfortune even if they may be to blame.
In these kind of circumstances, it is advised to control your rage and speak with the dealer. The majority of the time, that’s a scenario of misunderstanding, and a peaceful resolution is just around the corner.
Gather all supporting documentation, such as trading screenshots, trade logs, bank transaction statements, and other paper trails, before speaking with your broker. This phase will assist you in presenting your case for why you believe you are a victim of fraud.
Contact your broker in writing, either by email or letter, after you have gathered all of your documentation. This will not only assist the broker better comprehend your issue and provide further information backed up by facts, but it will also serve as proof should it ever be needed.
Try to get a consensus with the broker over what went wrong and why. You may come up with a solution jointly if you find the broker’s explanation to be persuasive. Tell your broker that you may take the complaint further if you remain certain that fraud has occurred and the issue has not been rectified. Since they cannot afford it, dishonest brokers often return your money.
In such circumstances, brokers may maintain their position and stop speaking with you. You may go to the next step in this situation.
Mention Their Names On Public Trading Forums.
The second step is to bring up the issue in well-known and significant forex trading forums like Forex Peace Army. Nearly all forex traders visit these forums, which are quite important to brokers and traders. Negative evaluations and ratings on these platforms have forced several fraudulent brokers to close their doors.
Most reputable forex brokers have managers on staff who are solely responsible for managing their reputation on these platforms. This indicates that forex brokers place a high value on the ratings and reviews posted on these sites.
The broker in issue will undoubtedly feel pressure if someone publishes on a forum about a potential forex fraud and provides all supporting documentation. It is completely feasible that the broker may contact you in this situation and make an offer to return the money or to make amends by removing the ad.
Request A Chargeback From Your Credit Card Company.
If you used a debit or credit card to complete the purchase, your third choice is to submit a chargeback request. The best way to recover money lost to forex scammers is via card chargebacks.
You may immediately challenge the disputed transaction with the issuing bank. After that, the bank will examine the claim and decide if it is genuine during the next several weeks. The broker’s bank will be notified if the dispute is upheld, and the issuing bank will then forward the claim to it.
The bank will then inform the broker that it has deducted money from the broker’s account in order to compensate the victim for the transaction and the chargeback investigation cost. The broker will then be informed about the dispute that was received.
You have the option of filing a chargeback on your own or with the assistance of a reputable chargeback business.
Complaints Should Be Filed With The Financial Institution That The Broker Used To Receive Funds.
The process of setting up a business account or payment gateway is time-consuming and sometimes takes months. Additionally, once closed, they will no longer be able to collect payments, and registering a new account will be more time-consuming.
What purpose does this serve? Considering how seriously banks and other financial organizations consider their goodwill and reputation. To that end, they have rigorous policies in place to disallow people or organizations that are involved in fraud or other financial crimes.
You may immediately report about fraud to the broker’s bank or any other financial institution they have used for transactions. By taking this action, the bank will contact the broker and may persuade them to agree with you and refund the funds.
Contact The Regional Trading Regulatory Organization.
Trading regulatory organizations keep an eye on all brokers in their area and treat all complaints seriously. You may contact the regulatory organization in your nation to make a claim for compensation if you have all the required documentation.
The regulating body in the US is the NFA, which also has a specific webpage for trading fraud complaints. When you lodge a complaint with the regulatory organization, they get in touch with the broker to discuss it. The broker will then find it challenging to resolve the situation, and they risk losing their licenses or paying a hefty fine. Since there is a substantial risk involved, the broker often concurs and refunds the funds.
These are the top 5 ways to get your money back after a forex trading scam. Always remember that it’s better to be safe than sorry, so choose your forex trading broker carefully at first.