A major India-based Forex scam has seen two men arrested in Chennai for operating a sophisticated forex Ponzi scheme. The 34 and 41-year-old have been running two websites since at least 2019, ultimately scamming $1.7 million out of around 70,000 people across the country. The only reason the bust took place was that one unfortunate person lost out on the equivalent of $15,000 through the scam.
To have obtained such a massive amount of cash in such a short space of time shows that not only are people not comfortable with coming forward, but many likely also don’t even know that they’re being scammed. Just as you’d expect, the people that were scammed were enticed by joining a high-returning low-effort FX scheme; actually, what was happening, was that the money sent for investments was actually being sent directly into the scammers’ accounts. Part of this cash was then used to pay small amounts to investors to maintain the illusion of trading, just like with any thought-out Ponzi scheme, which is likely what allowed them to maintain the operation for so long.
As I’m sure you can imagine, this one instance of Forex scamming alone is enough to show the importance of using reputable brokers. The damage can be huge, and if the fraudsters are sophisticated enough, there’s a good chance you might never realize that the reason for your losses can be blamed on anything but a bad market. Read on to learn more about the importance of choosing a broker wisely and how you can get your money back if you’ve been scammed.
India is one of the most prolific countries in the world when it comes to Ponzi schemes and other such scams, like pyramid schemes, but it’s certainly not the only one. One of the reasons it’s so common for people to get stung is because the people running these scams aren’t alone – they’re often huge networks of people, sometimes even operating out of an office building, working day in day out to get people to sign up for their schemes. Essentially, this system works by cold calling hundreds of people a day and offering a new service or asking you to switch out an existing provider for them.
In the case of forex trading, these pretend brokers will lure you in by promising massive returns on small investments. Perhaps you’re unsatisfied with your existing broker, or would like to get into trading but don’t know enough about how to get started – all scam brokers, whether from India or not, will look to capitalize on these ways of thinking, as well as the desire that most people have: to get rich, and to get rich quick.
The importance of using reputable brokers really can’t be stressed enough. Oftentimes, knowing which brokers are reputable and which ones aren’t is where people go wrong. That means doing your own research and using whatever advice you can get is equally essential. If you’re enticed by outrageously low fees, ask yourself: how is a broker making its money if it’s not charging much for transactions.
Another important sign to watch out for is whether or not they use any kind of client vetting process, and if they limit the number of clients they use or not. This shows they only have money on their mind, and that doesn’t mean making you any. If you’re unsure about using small-scale investment brokers and would prefer to make your own trades, major platforms like Binance Academy are a good place to start.
Forex scams, alongside those that occur with binary options, make up such a massive percentage of the broker fraud that takes place – up to 89% – that they’re really more common than you probably thought. If you’ve been scammed in the past or want to know the measures that can be taken to recover lost funds, you’ll be happy to know that at Payback LTD, we’re experts at securing chargebacks for all types of scams.
Our in-house experts and unrivaled knowledge of all the key sectors means we can confidently recover your funds; it’s what we’ve done for hundreds of others, totaling almost one billion dollars of money that we’ve reclaimed and put back where it belongs. If we don’t think we can get yours back, we simply won’t take the case. Get your free consultation on forex scams and have a read of our testimonials today.
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