Forex trading is one of the most lucrative financial markets in the world. Its popularity stems from its high liquidity, low running costs, easy market access, and flexibility.
However, because market access is easy and there is no central regulator, forex trading attracts all sorts of people, including some who are out to scam you. If you have recently lost money to one, a forex recovery company can help.
What is a Forex Recovery Company?
A forex recovery company specializes in investigating forex scams and advocating for forex traders trying to recover their money from fraudulent forex brokers and merchants.
In other words, a forex recovery company is an entity dedicated to helping victims of forex scams get reimbursement.
The Forex Recovery Process
If you have recently lost money to a forex scam, a forex recovery company is your best shot at getting it back. That said, you have to understand what goes into the process to avoid finding yourself a victim in yet another scam.
Here is a breakdown of the forex or bitcoin recovery process:
1. Gathering Evidence
For a forex recovery company to help you get a reimbursement, they need as much information about the fraudulent party as possible.
You will be asked to submit all the emails you shared with the fraudulent merchant or broker, any contact information you may have on them, and most importantly, statements of any transactions you made to the scammer.
This information helps the forex recovery company build a strong case against the fraudster. It also provides valuable hints about the identity of the scammer. So, try to gather as much information as you can about the fraudulent party.
Be sure to include any police or regulator complaints you may have made before turning to the recovery company.
2. Claim Assessment and Investigation
Once you turn in all the relevant information, the ball is in the forex recovery company’s court. They will conduct a comprehensive review of the data you provided to determine if you have a legit claim.
If your claim is legitimate, the company will launch an investigation to find the fraudsters. It’s usually easier for them to track down scammers because they’re well-versed in the specific patterns that forex scammers use to trick their victims. They boast professional cyber analysts’ teams and work together with lawyers and psychologists during investigations as well.
3. Resolve the Problem
If the forex recovery company is successful in finding your scammer, they may do the following to recover your money:
- Confront the scammer with a lawyer or a lawyer’s letter
- File a complaint with the fraudster’s regulator
Different forex recovery companies have different recovery strategies, and they may differ from what we’ve highlighted above.
Also, keep in mind it might take a while before identifying the fraudulent parties. What’s more, success is not always guaranteed, especially if the fraudsters were unregulated forex merchants and brokers.
Why Due Diligence is Critical When it Comes to Forex Recovery Companies
Although forex recovery companies were created to help forex scam victims get their money back, not every company in the market is legit. If you’re not careful, you may end up being scammed twice.
Scam artists usually create and sell each other “sucker lists” of individuals they’ve successfully scammed in the past. If you are on that list, another scammer — or in some instances, the same scammer — might come to you in the guise of a forex recovery expert promising to help you get your money back.
They’ll ask you to pay a deposit upfront, and if you do, they disappear in thin air. In other instances, they may stick around and try to extort as much money as they can from you.
It would be best if you practice due diligence while working with any forex recovery company. Here’s how to avoid another scam in the name of forex recovery:
Never Pay Money beforehand
Under Telemarketing Sales Rules, recovery companies and other telemarketers are prohibited from asking for or accepting payments until seven business days after delivering what’s needed. That said, try to stick to this rule by not paying out any money to a forex recovery company until your case is solved.
If someone calls you out of the blues offering to help you recover your money for a fee, a prize or a donation to charity, report them to the FTC.
Review Forex Recovery Companies First
Before you consult any forex recovery company for their services, try to find out more about them first. Check them out with consumer agencies, government agencies, and go through independent consumer reviews online to see what other people have to say.
In other words, don’t commit to the process blindly, as that is how you may lose your money again.
Get the Help You Need Today
There are plenty of success stories with forex trading and equally as many reports of individuals losing their hard-earned cash to scammers. If you’re among the victims, a forex recovery company can help, but practice due diligence so you don’t end up a victim of forex scams twice.