If someone calls you with an opportunity and promises a huge return, you may be tipped off that this may not be legit given the aggressive manner or the extravagant promises. It may not occur to you, however, that the demand for a fee paid only in bitcoin or in the form of a pre-paid card may also be a red flag.
Paying attention to payment methods offered by a service or company can be a sign of broker or forex trading scams. Many frauds ask for payment exclusively through methods that can’t be traced so they can hide funds to avoid getting caught.
It is harder to prove forex trading scams or broker fraud if the funds can be concealed. Additionally, it can be more difficult to put a stop to payment through a wire transfer than those made by a credit card. Even though bank transactions can be traced, the fraudulent party can claim the transaction was authorized and that they are not operating a scam.
In this risky environment, you need to stay safe. Trader Defense Advisory experts will help you evaluate whether an opportunity is legit or fake. If you have lost money, need fund recovery, or are experiencing broker fund withdrawal problems, contact TDA experts who are experienced in dealing with all types of scams and can help you seek redress for your claims.
The Growing Problem of Financial Fraud
Financial fraud has always been a problem, but it has grown in scale due to advanced technology, such as social media, and economic crises, such as those brought about by the COVID-19 pandemic.
When there is a major financial trend, like forex or cryptocurrency, forex trading scams develop as a way of diverting demand from legitimate brokers and attracting novice traders.
Added to this, if a large percentage of the population is suffering from financial instability due to job insecurity or other economic issues, people may fall for crypto or forex trading scams as a way of making quick money to pay rent or bills.
There are scores of scam types. These can include cold-calling seniors with fake investment opportunities or providing bad links on social media promising huge returns on forex, CFDs, or bitcoin. Some scams try to rob data from victims and can perpetrate full-scale identity theft.
In 2020, there were 2.2 million fraud reports, according to the FTC. This doesn’t mean that there were only 2.2 million fraud victims, but only reports, since the majority of frauds go unreported. These numbers are staggering and indicate that consumers should educate themselves about all types of scams including forex scams.
Payment Method: A Red Flag and a Key to Staying Safe
There are a number of ways of spotting red flags that may indicate a potential scam. Some of these can be a lack of a license, poor reviews or negative news stories, extremely high fees, and extravagant guarantees.
One often overlooked red flag for spotting crypto or forex trading scams is the payment method required of the client. For instance, if a forex broker insists clients pay and receive funds only through bitcoin or a pre-paid card that could be a sign of a forex trading scam.
Many scams, especially low-tech cold calling scams, will ask for a bank wire transfer rather than a credit card. Their rationale could be that it is harder to reverse a bank wire transfer than a credit card charge. Also, banks can often be reluctant to stop a transaction or reverse it. Credit cards are often amenable to making chargebacks, and it can be easier to get a refund than from a wire transfer.
How Easy or Difficult is Fund Recovery?
Fund recovery is often a challenge, but it is more likely than many people think, even if they have lost money in a forex scam or another fraud. The reason why financial fraud is underreported is that people who are the victims of fraud often feel deflated and lose hope. They may also feel embarrassed or have convinced themselves there is no way to get their money back.
However, at Trader Defense Advisory, we deal with many fund recovery cases each year and have seen frequent successes. Although there is no absolute guarantee that all the client’s funds can be recovered, TDA can greatly increase your chances of a successful claim.
Types of Fund Recovery
There are several types of fund recovery, including:
- Wire Recall
- Crypto Currency recovery
Chargebacks can be complex, but issuing banks and credit card companies are often eager to provide customers with stellar service. Refunds are easier through credit card chargebacks than through many other means. This is the reason many forex scams do not accept credit cards and online payment platforms, given the ease of refunds.
Wire recall is a bit more challenging than credit card chargebacks. The reason is that banks are often reluctant to interrupt a transfer unless there has been an error. Some banks do practice what is called a “fraud freeze” but the fraud must be proven and must be executed in a short amount of time.
One reason many forex trading scams accept only cryptocurrency is that crypto transactions are anonymous and cannot be refunded. An additional transaction is required to return funds. Since scammers can be invisible on the blockchain, they prefer crypto as payment.
Getting money back from crypto scams may seem hopeless, but it is not. Trader Defense Advisory generates crypto reports and has advanced investigative techniques to track down crypto-forex scams.
Have You Lost Money in Broker or Forex Scams? Talk to TDA Experts Today
If you have been the target of a forex broker scam, talk to Trader Defense Advisory. Our team of experts has vast combined experience dealing with broker scams and advocates for our clients. Consult with us and we will create a claim and help you get started on the path to fund recovery.