How to Report a Scam Crypto or Forex Broker?

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One FCA report from 2019 shows that people have lost over 27 billion pounds in 2018/2019 to crypto and Forex scams.

And this number increased even more after the Covid-19 pandemic since scammers did everything they could to exploit the situation, play on people’s needs and steal whatever they could.

After reading all this, the logical question is – how to recognize Forex and crypto scams and how to efficiently report them.

First of all, we want to assure you that you’re not alone. As you can tell, millions of people end up scam victims every year.

Scammers are changing their ways after the old ways were exposed and working hard on improving their stories. Every Forex or crypto scam is a cyber-fraud at its core, and with advanced technology, we’re getting sophisticated ways of fraud.

However, as there’s a way to steal the money, there’s a way to trace and recover it. You should never give up on what’s rightfully yours and not allow fraudsters to get away. Talking about a scam and admitting that you’ve bought someone’s story may sound embarrassing.

The fact is that until many people file a report and all the scam ways are exposed and well-known, these people will keep doing the same thing. It’s of utmost importance to understand that you’re a victim and there’s nothing to be ashamed of. Instead, you should put up a fight and report the scam to all the relevant authorities.

You can often hear this question from those who have been defrauded or have a scam victim in their surroundings.

No, the Forex market is not a scam. Like real estate market or share market is legitimate as long as you deal with a licensed realtor and a licensed broker, the same stands for the Forex market.

Of course, unlicensed Forex service providers, such as K7 Trade, AflPlanning, TrustGarden, and many others, make this market look like a fraud.

In reality, Forex is trading currencies, and as long as you deal with a legitimate investment firm, your funds are safe, and you can withdraw your profit at any moment.

Each country has different rules for Forex and crypto trading. In some places, dealing with the financial market is completely forbidden, so before entering it, check your country’s regulations.

If you are allowed to trade and end up a scam victim, each country has its own rules and its own authorities dealing with scammers. A lot depends on whether you are dealing with a regulated, unregulated, or offshore brokerage.

Regulated firms have their own license providers who should receive any claims, and if they find claims to be justified, they will reimburse the victim and penalize the brokerage.

Things get a bit complicated when it comes to unregulated and offshore brokers. The crucial difference between these is the country of headquarters. Suppose a broker is unregulated but resides in countries such as the UK, Australia, or Germany.

In that case, their regulators will issue a ban against the firm, warn the public, and the police may start actively investigating the case. If the broker is offshore, there’s a low chance that the regulator will do anything, so the best thing to do is report a scam in your own country.

In the end, specialized companies are dealing with fraudulent brokers. When nothing else works, someone like Global Fraud Protection, with years of experience, can assist and pressure the right spot, so the company will issue a refund and avoid legal consequences. 

While this may be useless, and many people have said that police even blamed them for being involved with a fraudulent broker, some countries take it seriously. For instance, the German Criminal Police join BaFin whenever there’s a report of a fraudulent trading firm.

As we’ve seen, Europol is doing its best to look for fraudsters. So, wherever you are, try and call the police first. You never know what can happen.

When it comes to Forex and crypto scams, and monetary transactions generally, the sooner you report the case, the higher the chances you have to resolve the matter successfully.

Sometimes, scam brokers tend to disappear after a while, and all the stolen funds disappear with them. If it happens, tracking down the money is way more challenging than if a broker is still active and has active bank accounts and crypto wallets.

Our team is here to hear you out and help you with the issue. While we cannot guarantee 100% success, we can promise to do our best to track down the scheme firm and your funds. 

Let’s be honest here. There are no guarantees in life. Thus, if someone promises to recover your funds or gives a 100% guarantee, you should know that you’re entering another scam.

Yes, it’s possible to recover stolen funds, but it all depends on the particular case. As mentioned, finding the scammer and money is much easier if the firm is still active. Besides, if a broker has a license, authorities will do their job and reimburse you.

There are numerous factors to take into account. What’s important is that you’re aware of the possibility of recovering your money and that you should use it and not let fraudsters run without a fight.

Here lies the issue. Crypto transactions are encrypted and created with anonymity in mind. Therefore, locating your crypto is difficult, and connecting a specific wallet to a trading broker is even more challenging.

Thankfully, technology is advanced enough, and there is software to be used for cases like this. Nowadays, you can decrypt the transaction and locate crypto in any wallet anywhere.

For this, you will need an expert. Again, note that anyone who promises you your crypto back is a scammer, as there are no guarantees.

If you reside in the UK or your Forex or crypto broker was allegedly UK-based, you can report the scam to the Financial Conduct Authority, FCA.

This regulator would evaluate the case and reimburse you if the company was under their license. If not, they can take other steps, such as contacting Action Fraud Police, a specialized department for cyber fraud.

Besides, you can contact Global Fraud Protection. We have vast experience dealing with fraudulent brokers and might be able to assist with the matter.

If you’re a German resident or your brokerage was registered in this country, you can report the scheme to the German regulatory body, BaFin.

As explained, this authority takes cyber-fraud seriously and involves the German Crime Police immediately.

In addition, you can contact us and tell us your story. Based on it, we might be able to find an alternative money-back solution in case the firm was unlicensed and you’re not entitled to a regulator’s compensation fund.

You can get in touch with Global Fraud Protection, and we will work with you on filing a dispute for a chargeback or alternative refund solutions. It’s always good to have several options and not keep your hopes in one basket.

Getting your money back from a scam brokerage mainly depends on the broker’s regulation, the payment method you used, and other facts related to your specific case.

For instance, customers using their credit cards for a deposit are entitled to a chargeback within 540 days since the fraudulent transaction occurred. The process is not easy as it requires preparing the case, collecting evidence, and presenting the case in front of different authorities.

While it may take a few months, and many are not patient enough, we advise you to try it out. Getting your hard-earned money back is essential. Knowing that you fought back and got justice is even better.

The post How to Report a Scam Crypto or Forex Broker? appeared first on Global Fraud Protection.


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