Forex Scams

About a week ago, I have received the following email with a proposal to launder money out of Hong Kong. Other than crossing out the fake name of the person who sent it to me, name of the bank mentioned and the email address it was from, the email content below is exactly as I received it.

Hello,
I am  xxx, supervisor on investment in xxx Bank,Hong Kong.; I have a sensitive, confidential brief from Hong Kong and I am asking for your partnership in re- profiling funds ($18,500,000.00 USD).
What I require from you is your honest co-operation and I guarantee that this will be executed under a legitimate arrangement that will protect you and I from any breach of the law. Please accept my apologies, keep my confidence and disregard this email if you do not appreciate this proposition I have offered you.
All confirmable documents to back up this fund shall be made available to you, as soon as I receive your reply via: (xxx@yahoo.com.hk), I shall let you know what is required of you.
Regards from,
xxx

Of course, for those who want to make fast and easy money, the above proposition may be too good to refuse. After all, this could be a little bit of extra revenues on the side. However, with a little of knowledge and experience, I went straight to the next email in my inbox. As I knew that if I genuinely reply to the sender of the email and give all the information he requests, the savings that I have in my bank account will soon be gone without a trace.

This is only one of the few scam emails that I received this year. I have learned that we could actually report it to the US Department of Justice.

Email scam is only one of many different facets of scheming. In a loosely regulated Forex market, it provides the perfect environment for a schemer to plot his trap. Obviously, schemer plans the trap for his own financial benefit at the expense of someone else’s financial loss. However, there are those who do not see the trap due to one’s own greed.

To continue my story, a few days later after I received the email, I came across this online advertisement stating that you ARE GUARANTED make a hundred thousand dollars a month by subscribing to their trading signals. Sure enough, that piqued my interest as I clicked on the online advertisement to see which company would make such a bold statement. Upon getting to the homepage of the company – I see that it states that 1) it made $400M in 2008 and 2) you could make thousands of dollars each day just at the expense of a few clicks! No more thinking! Just trading and gaining profits! As I have never done business with this company, I would not go as far as to say the company is a scam but it has to be on the border line of scheming.

On their online advertisement and homepage, the company mentioned a number of times that:

  1. 100% Guaranteed
  2. It’s simple
  3. Just click

Again, like the email that I received, this opportunity to make money from Forex trading is too good to refuse. Not anywhere on the homepage of this Forex trading signal company, did it disclose the risks of Forex trading. I will let my readers make their own judgment whether the above real life example constitutes of what we would call a scam. However, there is no question that the company is downright irresponsible to misinterpret the ease to make profits trading Forex without disclosing the risks of it!

In the next blog post, I would write on the steps that we could take to avoid Forex scams.