There’s really no stopping the fraudsters with the growth of social media and digital ads. More lately, a UK Instagram influencer using a dodgy broker caused many others to lose their funds to FX trading. It’s unsurprising, given the extravagant lifestyles and antics displayed by such influencers, who then explain how certain trading choices have earned them millions.
If you’ve been a target of a Forex Scam, you’re probably asking how to get your money back. Scam victims might get aid from professional service providers to get their money back from those of a forex broker. For a charge, these recovery firms examine their case, gather proof, challenge the broker, then reclaim their funds.
There are some measures you may take before contacting a recovery business to attempt to retrieve the lost funds on your own. The five stages to reclaiming your money are outlined below.
Make an Effort to Communicate with the Broker and Figure Out What Did Go Wrong
Newbie forex traders frequently lose money due to a poorly designed trading strategy and a lack of understanding of what the forex market operates. While the fault may lie with them, enraged traders may place blame on the broker for their loss.
In these situations, it’s best to keep your rage in check and speak with the broker. Most of the time, it’s a case of misunderstanding, and a peaceful resolution is within reach.
Gather all proof, such as trading snapshots, trade logs, bank transaction statements, and other paper trails, before visiting your broker. This stage will assist you in presenting your case for why you believe you have been a victim of fraud.
After you’ve gathered all of your evidence, send an email or a letter to your broker. This will not only assist the broker in better comprehend your issue and provide a more detailed description with proof, but it would also serve as proof in the future if necessary.
Make an effort to reach an agreement with the broker on what went wrong and why. If the broker’s response appears credible, you can collaborate to find a solution. If you are still convinced that the fraud has occurred and the issue has not been addressed, notify your broker that you want to escalate the complaint. Fraudulent brokers can’t afford it, so they’ll refund your money in most cases.
In some instances, brokers may stand firm and refuse to communicate with you. You can go to the following step in this situation.
Call Them Out and Expose Scammers on Public Trading Platforms
The second step is to bring the issue to the attention of well-known and important trading forex forums such as Forex Peace Army and ThatSucks. Almost every forex trader visits these platforms, and they are extremely valuable to brokers and traders. Because of bad evaluations and ratings on such sites, several scam brokers have closed their doors.
Most reputable forex brokers have specialized managers on staff who maintain their online reputation. This implies that forex brokers place a high value on the ratings and reviews posted on such sites.
If someone uploads all proof of a suspected forex fraud on a forum and the post acquires traction, the broker in issue is certain to be stressed. In this scenario, the broker may contact you and offer you the funds back or compensation in exchange for the post being removed.
Submit A Refund Request to Your Credit Card Issuer
If you used a credit card or debit card to complete your transaction, the third way is to submit a chargeback. The most efficient way to recover funds from forex scams is to use a credit card chargeback.
On the relevant transaction, you can directly submit a grievance with the issuing bank. In the next weeks, the bank will evaluate the claim and verify its legitimacy. If the disagreement is deemed to be genuine, the claim will be forwarded to the bank of a broker, who will inform the broker.
The broker will subsequently get notified that the bank has taken money from the account of the broker to refund the victim for the transactions as well as the chargeback inquiry cost.
You have the option of filing a chargeback on your own or enlisting the help of a qualified chargeback firm.
Submit A Complaint to the Financial Institution; The Broker Uses This to Receive Funds
Establishing up a business account or payment gateway is a time-consuming procedure that might take months. They won’t be able to accept funds after they’re closed, and creating a new account would take much longer.
What’s the point of telling you this? Because banks and financial organizations place much too much emphasis on their reputation and goodwill. They have a strong policy in place to prevent people or businesses from participating in frauds or financial crimes.
You can submit a fraud complaint immediately with the broker’s bank or any other financial institution they used for transactions. The bank will contact the broker as a result of this action, which may compel them to agree with you and refund the funds.
Contact Your Region’s Trading Regulatory Body
Trading regulatory organizations monitor all brokers in their jurisdiction and treat all complaints seriously. If you get all of the necessary proof, you can file a claim for compensation with your country’s regulatory agency.
The National Futures Association (NFA) is the regulating authority in the United States, it has a good website for the trading fraud reports. When you register a complaint with the regulatory organization, the regulator contacts the broker. The broker’s licenses may be suspended or they may face a large penalty if the problem is not resolved. The broker generally agrees and refunds the money, despite the considerable risk involved.
So there you have it: the top five ways to get your money back from a forex trading scam. Remember that it’s always better to be safe than sorry, so pick your forex trading broker carefully at first.