The Financial Commission ‎Warns Against FX Follow-Up Scams

The Financial Commission (FinaCom PLC) warned ‎investors against companies or associations that approach victims of Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term ‎traders claiming that, for a fee, they can help them recover the sums invested ‎or the losses incurred on unlawfully FX trading platforms.‎

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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.‎

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.”