Unfortunately, there are many shady people out there who think that it's easier to scam people than to do honest transactions.
This is especially true in the financial markets.
So in this article, I'll go over the common scams out there and what you can do to potentially recover your money.
If those things don't work, then I'll also show you an additional step that you must take if you want to break free of your job.
To avoid getting in these situations altogether, be sure to read our guide on how to research a Forex broker. Read it BEFORE sending any money.
It's up to you to do your own research.
Do not ask us: Is ____________ a scam?
If you ask that, you will be ignored.
Everything we know is in this guide.
Take responsibility for your life!
Common Forex Scams
There are several flavors of scams out there, but the bottom line is that if a company wants you to pay a significant amount of your deposit to with withdraw your money, then it's a scam.
If a company contact you out of the blue on a social media platform and wants you to invest money, it's probably a scam.
If you contact a company and they stop answering your messages, when they were super responsive before, then it's probably a scam.
Now let's get more specific…
The first thing that you need to understand about the Forex market is that trading accounts are funded with fiat currency: U.S. Dollars, Euros, British Pounds, etc.
At this point in time, most legit Forex brokers don't accept cryptocurrency. If they do, they will also accept fiat money.
So if a “Forex broker” says that they only accept crypto, then they probably aren't legit.
There are trading platforms (exchanges) that allow you to trade FX pairs, so be sure to find out which one you're dealing with.
Is it an exchange, or it is a broker?
If the person you're talking to mixes these terms, that's a clue that it's a scam.
A legit exchange or broker usually won't contact you from their side. So if you have someone messaging you on Instagram or Twitter, that's a red flag.
One of the best things about cryptocurrencies is that transactions cannot be reversed. But in the context of Forex scams, that's a bad thing.
Therefore, it's YOUR RESPONSIBILITY to do your research on a company, before you send in your money. I'm going to repeat that because many people out there don't understand this…
It's your responsibility to research a company BEFORE sending money. If you don't, then you need to accept the consequences.
Another common scam is they get you to deposit money to their account, then they send you trading reports every week showing that you're making a huge return.
Then they will try to get you to deposit more money, so you can make even bigger returns.
They basically prey on your greed.
Once you tell them you won't deposit any more money, they'll stop talking to you.
Another name for this is the Romance Scam. It blows my mind that someone would sink this low, but some scammers pretend to be average people looking for a date on Tinder, or any of the other dating apps.
I would assume that they are great texters and have a very attractive photo.
At some point, they will try to get you into any of the scams mentioned here, or one of the variations.
Pay Your Tax Before Withdrawing Scam
Some fake brokers will tell you that you have to pay a 20%+ tax before you can withdraw your money. From what I've heard, the scammers first say that you made a bunch of money and your “tax” will be more than what you initially deposited.
Obviously, if you agree to pay the “tax” they will keep it, along with any money in your account.
This is the same for any large fee that they ask you to pay before you withdraw.
Dump and Run Scam
This is what Adrian Shiroma did back in the day. He showed fantastic trading returns to attract as many new customers as possible.
Once he had enough money, or he didn't want to deal with withdrawal requests anymore, he had one “big losing trade” and kept all the money for himself.
Of course, he was never trading any money to begin with, and that “big losing trade” was just a way out.
Money Recovery Scam
This one is crazy because they get you coming and going. Some scammers offer to “help” you get your money back from a scammer.
Obviously, they will say that they tried…then keep your money. Here's one example of someone who always tries to spam my YouTube channel. They usually point you to Instagram.
You Got Scammed, Now What Can You Do?
Alright, if you got scammed, there are a few things that you can do to try to get your money back.
In reality, it's a longshot, but if it's a lot of money, you should probably try everything you can.
Contact a Lawyer
The best first step is to contact a lawyer in your area that deals with these types of cases. Before going to lawyer however, be sure that you have as much information about the “broker” or “trader” that took your money.
Have names, email addresses, message logs, company names, social media usernames, videos and pictures. Anything that can identify the people who took your money.
You'll need to have this information to build a case against them.
From there, the lawyer can advise you on what to do. As with most things like this, it doesn't hurt to get a second opinion.
Report Them to the Regulating Body
You can also report them to the regulating body in your country that handles financial investments. Just look that up on the internet.
Again, you'll have to have all of the information listed above. The more the better.
If you don't have any of that information, then there isn't much that the regulating body can do.
Contact Your Credit Card Company
If you deposited money with a credit card, you can simply deny the transaction with your credit card company. This will result in a chargeback and you'll get your money back.
Now be sure to use this method only if you're sure that it's a scam. If you do a chargeback on a legit broker, then they will eventually stop offering this convenient funding method if enough people abuse chargebacks.
If you paid with cryptocurrency, there's no way to get your money back.
Be a Pain in the Ass
This is the last ditch effort that might actually work. Just keep bothering them until you get your money back.
Send messages, emails, whatever. Flood their inbox or Telegram channel. Make it unusable.
I'm not a fan of this method, especially if you only lost a small amount of money, because it can be a waste of time.
But it could work, if everything else fails. At the very least, you'll annoy the crap out of them.
I Tried All That and it Didn't Work, Now What?
Here's where you need to make a decision.
If you tried everything and nothing worked, then you're just going to have to chalk it up as a learning experience and not let it happen again.
But now you're at a crossroads…
Are you going to go back to your 9-5, with a boss that you hate? Or are you going to learn to trade and invest for yourself, to create more freedom in your life?
The decision is up to you, I'm not going to try to convince you either way. I'm done with trying to convince anyone.
Freedom is not for everyone. I'm serious.
Some people prefer to just go to a job every day and spend the best years of their lives wasting away under fluorescent lights and hanging out with people they hate.
If you really want freedom, you'll have to take responsibility for everything you do. That's not for everyone.
But if you are up to the challenge, you can start with our completely free educational articles on our blog and take it from there.
Here are a few of our most popular article categories:
- Forex tutorials for beginners
- Cryptocurrency trading tutorials
- Forex trading strategies
- Trading psychology
I wish you the best of luck on your journey to personal and financial freedom.
Remember, you're more powerful than you know. Take responsibility for your development and you just might be surprised at how far you can go!
To your success,