The Financial Commission ‎Warns Against FX Follow-Up Scams

This type of activity is typical of the fraud mechanism known as a ‘recovery ‎‎room’. ‎

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.‎

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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.‎

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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.”

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