The Financial Commission (FinaCom PLC) warned investors against companies or associations that approach victims of forex traders claiming that, for a fee, they can help them recover the sums invested or the losses incurred on unlawfully FX trading platforms.
The self-regulatory body cautions investors that “a group of individuals” are trying to usurp the identity of FinaCom itself by using a similar logo in order to give the appearance of trustworthiness and legitimacy.
This type of activity is typical of the fraud mechanism known as a ‘recovery room’. Although FinaCom could help people who have lost money, it never charges a fee, guarantees money back, or gives special preference to anyone who files a formal complaint.
EuropeFX Now Supporting PayPal DepositsGo to article >>
The scam artists buy and sell lists of former clients of brokerages so that they promise the recovery of money lost or profits not received – for a fee in advance.
And while the regulator recommends that investors use its database of member brokers and check their disciplinary records, it adds that its services for traders are offered absolutely free.
The FinaCom noted that it only investigates claims that are filed against a member firm, where its Dispute Resolution Committee (DRC) uses a proven method to process complaints and deliver a decision. Financial Commission does not service customers of brokers who are not members, thus it cannot process complaints against non-members and no further action will be taken if the broker is not part of organization.
Finally, the statement states: “The Commission does not solicit or initiate communications with customers by “cold” emailing or calling – we communicate with customers only after receiving an inbound inquiry via our official website www.financialcommission.org.”