How to recover funds from a dishonest Forex broker [Guide]

Scams on Forex market, or rather under his guise, is the bane of both legally operating companies in the industry and, above all, beginner investment students. It is they who most often fall victim to unfair practices. But if we have already fallen into the trap of cheaters, do we have a chance to come out unscathed?

Diagram of Forex fraud

We inform you almost every month about new items on alert lists regulators. They usually concern brokers who provide their services without the required licenses and permits. They are also called "Clones" that pretend to be legitimate companies. Having been active in the foreign exchange market for a while, we should have no problem distinguishing grain from chaff. Worse with newbies. It is the inexperienced ones that are targeted by scammers.

If we have already hit on "Broker"which is a scam (with English scam - cheating), the diagram looks the same in most cases. We set up an account, pay a deposit, and "account manager" conducts our transactions or gives "golden" advice on how to invest. On these councils, we either lose funds or are quickly tempted by the vision of further, even greater profits. It's only best if we pay a little more money for the deposit.

Whatever it takes, finally there comes a moment when we want to withdraw our funds. This is when excuses, procrastination, no response to phone calls or e-mails begin. In a word, a pure suggestion that the payment will not be made and our money is gone. Are you sure?

Be sure to read: The most popular scams on the Forex market - TOP 5

How to recover funds

If we already know that we have found a fraudster, it does not mean that we must count only on his mercy.

Reporting such a situation to the national regulator may speed up the inclusion of a given company on the official list of warnings. It is worth doing this to protect others. But usually it won't do anything else. Describing your situation on the forum can prevent others from falling into the trap of a scam. But that won't help us recover our funds. Taking legal action and reporting the case to the police - in the case of a company from the other side of the world, it is even certain that the case will be discontinued. Unless the company was physically active in Europe - then it may take a long time, but ultimately there is a chance to catch the perpetrators (see under the tag # nerd hunters).

So what can we do to get our funds back? Much depends on the method of paying our deposit.

PayPal

It is one of the most famous and largest online payment operators, whose services are used by almost 400 million people around the world. If you have deposited funds using this method, there is a good chance of getting them back. PayPal runs Buyer Protection Program (CSP), which is to protect the interests of its clients in the event of fraud. It is true that the regulations are written more for the purchasing model, but if the fraud is evident in the case of a Forex broker, it should also be successful.

Time may be the key. You must report the scam within 180 days of making the deposit transaction.

Payment card and Chargeback option

In the case of topping up the account with a payment card, the chance to recover the money deposited is also high. All because of Chargeback. What is this? Chargeback allows for a chargeback and a refund to the card in the event of errors, unrealized transactions or ... fraud.

What is the procedure like? We submit the complaint not to the card issuer but to our bank. Our bank then communicates with Visa or MasterCard to cancel the transaction.

How ChargeBack works:

• Customer contact with the bank,
• Presentation of the situation, submission of a complaint,
• Acceptance of the complaint by the bank,
• Recognition of the claim,
• Refund.

In the meantime, the bank may require us to confirm that we have attempted to recover the funds on our own or information that we are dealing with a fraudster (official announcements from the Polish Financial Supervision Authority and other regulators will certainly help here).

In this case, time is also important. The sooner we report a scam, the better the chances of success. Usually, the maximum is set for 120 days, and we can wait up to 2 months for the refund to be made.

Bank transfer

If you've used this method, unfortunately we don't have good news. If the funds have been deposited via bank transfer, which has already been realizedthere is practically no chance of canceling the transaction. The only option is to send a request for payment (payment) or use a law firm that knows how to handle such cases. Unfortunately, this is the most expensive option and with a highly uncertain end result.

Summation

The key is to choose a broker with an appropriate reputation, having appropriate regulations and a stable financial situation. However, if we have already fallen into the tentacles of fraudsters, reaction time is key. If the broker is acting suspiciously, urging you to invest and make a quick deposit, it is almost certain that this is a scam.

No honest broker encourages you to deposit, tells you what to invest in, or refuses to withdraw your deposit.

Response time is key. The faster you react, the more likely your funds will be recovered. Before depositing money, always check the opinions of a given broker at least in several places on the network.