Beware of new technology! How to protect yourself from Forex Scam victims

The current digital age has opened the door for more people to access investments. However, it has also created more opportunities for scammers to easily cheat money. Forex trading has thus become a target for fraudsters who promote exaggerated advertisements about returns of tens of percent per month. Yet, after depositing money, investors often find themselves unknowingly victims.

This article will reveal the secrets of the 6 main types of Forex scams along with techniques to protect yourself from falling prey.

What is Forex Scam? Really

Forex Scam (Fraud in the Forex market) does not mean that Forex itself is a scam. Instead, it refers to losing money through channels related to the Forex market in various forms, such as:

• Promising to pay returns as agreed, but disappearing over time
• Collecting investors’ personal data for malicious use
• Creating fake websites or imitation applications of well-known brokers to solicit deposits

These scams often stem from investors’ lack of knowledge and believing exaggerated advertising, making them victims unknowingly.

Is the Forex market truly a scam?

No. The Forex (foreign exchange trading market) is a legitimate, regulated market that exists. The problem lies with the people, not the system. Due to its easy accessibility, scammers create all kinds of schemes to deceive, from creating fake brokers, selling ineffective AI trading software, to establishing illegal pyramid schemes.

6 Common Types of Forex Fraud

1. Unregistered and unregulated brokers

This is the basic principle of scammers: creating fake brokers and claiming to have licenses from foreign authorities such as FCA or other institutions. Even if they forge documents to look authentic, when contacting the regulatory agencies, the response will be that “this company has no license.”

Risk: Once they steal your money, no authority can help, and legal claims for refunds are often ineffective.

Protection method: Before depositing, verify the license by visiting the official websites of regulatory agencies such as ASIC, FCA, MAS, and searching for the company name.

( 2. Obvious fake AI trading systems

Scammers develop trading programs claiming they can generate over 20% profit daily automatically, showing beautiful trading history. Initially, they may deliver results as promised, but when market conditions change, the AI system fails completely, leading to loss of your funds.

Normal systems do not guarantee results, and no global market offers consistent returns like that.

) 3. Imitating well-known brands

Fraudsters clone company names, websites, phone numbers, and emails, then lure traders to deposit money into their fake trading groups. The result is people transferring money unknowingly to fake sellers.

Risk: This type of scam is difficult for beginners to detect.

Protection method: Contact brokers directly through official contact channels on their websites. Verify the address and confirm via phone. Avoid clicking links from untrusted sources.

4. Tempting offers: deposit first and “receive huge returns”

Scammers attract victims by saying that a minimum deposit is required, and then the broker will invest on your behalf, promising high returns. They also guarantee returns higher than your deposit.

When investors see small profits, scammers will suggest depositing more to level up the returns.

Protection method: A secure trading account will never force you to deposit more. Everything depends on your willingness and readiness.

5. Imitating social media personalities and impersonating individuals

Scammers create fake Facebook, Instagram, or TikTok accounts pretending to be popular traders or “Forex experts,” then invite you to transfer money into trading groups, promising tips to make money. Once you transfer, the account disappears immediately.

6. Ready-made fake pyramid schemes

Scammers claim to be Forex brokers and accept minimum deposits of 50,000-60,000 THB ###or local currency###, guaranteeing 10-15% monthly returns. If you invite friends to deposit, you get an additional 5% commission.

The case of Forex 3D in Thailand is the most famous example, where thousands of investors became victims before the scammers were caught and prosecuted. However, many victims do not recover their losses fully.

5 Warning Signs to Remember

( 1. Unusually high guaranteed returns

If someone tells you, “Guaranteed profit of 20-30% per month,” that’s a red flag. Legitimate brokers do not make such guarantees because they know Forex involves risk and volatility. Returns depend on individual skills and decisions.

) 2. Requests for quick additional deposits

If a broker staff says, “You need to deposit more this month to get higher returns,” or “Bonus available only today,” stop communicating. Legitimate brokers will give you enough time to decide.

3. Posting images of wealth and luxurious lifestyles without suspicion

“Trading gurus” posting pictures of traveling abroad, luxury cars, or living lavishly with motivational phrases are often advertising tricks for scams. Real trading teachers teach techniques, how to read charts, and risk management, not flaunt wealth.

4. Claiming international awards that cannot be verified

Try searching for the award on Google or the training website. If no relevant information is found, it may be a fake award.

5. Featuring famous celebrities for promotion

In the case of Forex 3D in Thailand, many celebrities were involved in advertising and later admitted to being scammed or facing legal cases. Do not trust a broker’s safety just because a celebrity endorses it.

5 Key Prevention Tips

1. Always verify licenses

Before depositing money, visit the official websites of regulatory agencies such as ASIC ###Australia###, FCA (UK), or MAS (Singapore), and search for the company name. If not found, it indicates no license.

( 2. Check if under regulation

Reliable international regulatory agencies include ASIC, FCA, MAS, SEC )United States###, and ESMA (Europe).

( 3. Make careful decisions about high bonuses

Reasonable bonuses are typically in the range of 10-50 USD for initial deposits. No unclear conditions or complicated withdrawal restrictions should be present.

) 4. Search for awards independently

Enter the award name and company name into Google to see if other sources confirm it.

( 5. Do not believe just because a celebrity endorses

Celebrities, athletes, or influencers in the digital world can be scammed just like anyone else.

What to do if you have been scammed

) Do not transfer more money

This is a sign that you are already in the scammers’ trap. No matter what they offer to recover your money, stop all contact.

( Collect all evidence

Remember and keep:

• Websites, platforms, all documents
• Emails, messages, conversations, phone numbers
• Addresses, bank accounts used for transfers

) Hire an advisor or lawyer

Contact local enforcement agencies, file a report, and prepare to sue according to the law to punish the offenders and try to recover your money.

Summary

Forex trading itself is not a scam, but the world of Forex scams is real and still growing. The key is your choice to:

✓ Use licensed and properly regulated brokers ✓ Trade independently, not letting others manage your funds ✓ Not believe exaggerated advertising ✓ Conduct thorough research and verification before making decisions

By following these rules, you can significantly reduce the risk of being scammed in the Forex market, making your investments safer.