Forex Withdrawal Scam
Many forex brokers promise huge gains from forex trading and yet when their customers ask to withdraw money from their accounts, they either refuse, demand high fees, or disappear. That is the pattern of a forex withdrawal scam and many people do not suspect they are dealing with a fraudulent party until it is too late and they can’t withdraw their money.
Although fund recovery services can be effective at tracking down forex trading withdrawal fraud, it is useful to know the signs of these scams, understand how they operate and how to avoid them. Those who have lost money to an online forex withdrawal scam should consult with a fund recovery agency that can help them recover their funds.
Chargebax has the expertise and the right strategies to help you retrieve funds from a forex withdrawal scam. We work with hundreds of banks and financial institutions and have proven strategies that can help you get your money back when the broker refuses to release funds or disappears.
Forex Trading Withdrawal Risks
When a customer opens an account with a broker, they are in effect giving them control over their money. This involves trust that the broker will trade the money as directed by the client and will return the money with the gains that were earned through trading. This seems like a straightforward expectation, but with forex trading withdrawal fraud, these requirements are not met.
Generally, with forex trading scams, no actual trading takes place. The fake broker may offer an app or an extension on a website that will allow the client to see forex trading in real-time. This often is nothing more than the technology that is used for a video game. Most forex withdrawal scams are Ponzi schemes in which clients give funds to the broker and they go right into the broker’s account.
They are not traded at all. The broker will claim that the client lost or gained a certain amount and will ask for additional deposits before agreeing to a withdrawal. For instance, if the broker decides to tell the client that they made money on the trade, they will promise an even bigger return with additional deposits. If they tell the client they lost money, instead of allowing the client to retrieve the funds, they will tell them it is worth it to make the money back with an additional trade.
Sometimes when a client suspects that fraud is going on, they will check their trades against what is going on with the currency pairs on a financial website. However, the volatility of these assets provides an advantage to the brokers. They could claim that at the exact time the trade was executed the currency pair gained or lost a certain amount. Only the most diligent people will check this because most by that point have put their trust in the broker.
If someone tries to call out the broker or asks to withdraw their funds, the broker is in a position of power, because they do not have to return the money. They can ghost the client on social media or disappear completely with all of the funds. Since these forex withdrawal scams use fake names it can be a challenge to track them down.
How to Identify with Forex Trading Withdrawal Fraud
The following are common signs of a forex trading withdrawal fraud:
- Broker is not licensed
- Guaranteed returns
- Aggressive tactics
- No or little contact information
- Does not take credit cards as a form of payment
- Does not allow withdrawals without huge fees
- Does not communicate
Always check that a broker is properly licensed before opening an account. This means checking the regulator’s site to ensure the license is genuine. Many brokers claim to have licenses but these may be from third-tier regulators that provide no real protection to consumers. Visit the regulator’s website and double-check if the broker holds a license. Also, make sure the regulator is reliable.
Many people ignore the signs of a forex withdrawal scam until they realize that they are dealing with a broker that will not release their funds. The broker may insist that the customer make additional trades or charge a huge fee for withdrawal. In some cases, the broker will disappear or block the customer if they demand a withdrawal.
How to Recover Your Funds from an Online Forex Withdrawal Scam?
If a broker is ghosting you or refuses to allow you to withdraw funds, it is time to find a reliable fund recovery agency. These services consult with clients and get a clear idea of the case. They will determine the chances of fund recovery success and if they accept the case, will use the information provided by the client to track down the forex withdrawal scam. They often work with government agencies and law enforcement to close down the scam and to return funds to customers. Chargebax experts have dealt with forex withdrawal scams and have helped our clients retrieve funds. We have a strong working relationship with banks, regulators, and government agencies and can give you the strategies you need to get your funds back.