Losing money to scammers is a common phenomenon nowadays. With the fastest growth of the internet and social media, this fraudulence has got a boost. These scammers would make you fall into their trap by showing appealing advertisements with extravagant lifestyles and shenanigans.
If you’ve been a victim of forex fraud, you’re probably wondering how to get your money back. There are specialized service providers who can help fraud victims to get back the funds from forex brokers. These services look into the matter, collect proof, confront the broker, and recover the funds for a fee. However, before employing a collection agency, you might take certain efforts to recover your payments on your own. Here are five methods to recover your money.
Communicate With Your Broker And Identify What Went Wrong
Novice forex traders often lose money because of bad trading methods and a lack of knowledge of how the currency market operates. They may be to blame for their own mistakes, but furious traders may point the finger upon the broker.
In such instances, it’s best to keep your cool and talk to your broker about it. Usually, it is a case of misunderstanding, and a friendly solution can be found nearby.
Collect all evidence, such as transaction screenshots, transaction logs, bank statements, and other paper trails, before approaching the broker. This phase will assist you in determining why you believe you have been a victim of fraud.
You should contact the broker in a written letter or email. The written descriptive form of a letter or email will help the broker to better understand your complaint or problem. In addition to that, it will also serve the purpose of your evidence if needed in the future.
Try to contact the broker and identify what really went wrong and why. If the response from the broker seems convincing to you then you both can come up to a solution together.
Expose The Broker Scammed You
The next step is to bring the issue to the attention of well-known and popular Forex trading forums. Almost all foreign exchange traders use these forums, and they are extremely important to brokers and traders. Due to negative reviews and ratings on such portals, several scam brokers have stopped their operations.
Most reputable forex brokers hire a dedicated payroll manager to oversee their online reputation. This means that such forums’ ratings and reviews are extremely important to Forex brokers.
If someone posts about getting scammed with proper evidence and the post get momentum in a forum then it will surely get the sweat out of that alleged broker. In such a scenario the chance is really high that the broker will contact you to solve the issue, at least to remove that post.
Chargeback Through Your Payment Partner
If you use a debit or credit card, the third alternative is to file a chargeback. The most effective technique to recover money lost due to currency fraud is to use a credit card chargeback.
For linked transactions, you can directly dispute the issuing bank. Within a few weeks, the bank will review the claim and determine its authenticity. If the dispute is valid, the issuing bank sends the claim to the broker’s bank, which informs the broker.
The broker will be notified of the dispute, and the bank will be alerted as well. The monies will be removed from the broker’s account, and the transaction and chargeback investigation expenses will be refunded to the victim.
File Complaint To Broker’s Payment Gateway
It takes a long time to set up a business account or a payment gateway. You won’t be able to receive funds if it’s closed, and opening a new account would take longer.
Banks and financial institutions prioritize their reputation, which is why they have a strict policy prohibiting individuals and groups involved in fraud and financial crime from doing business with them.
You can file a fraud complaint directly with the broker’s bank or the financial institution you used to complete the transaction. This process may lead to the bank contacting the broker, forcing the broker to agree and repay the funds.
Contact To Your Local Financial Regulator
All brokers in the region are regulated by the trade regulation, which takes all complaints seriously. If you have all of the necessary documentation, you can file a claim for compensation with your country’s regulatory authority.
The National Futures Association (NFA) is a regulator in the United States, with a dedicated website for trading fraud complaints. When you file a complaint with a regulator, the regulator will follow up with the broker. After that, it becomes more difficult for the broker to resolve the issue, which could result in the loss of his or her license as well as severe penalties. Because of the huge stakes, brokers frequently agree and return the funds.
So there you have it: the top five ways to get your money back if you’ve been a victim of a forex scam. Always remember that it’s better to be safe than get scammed. As a result, choose a Forex trading broker cautiously.