The Broker Swaps Fraud Review exposes bogus claims made by brokers and explains how you can avoid being a victim of these scams. Many brokers offer outrageous signup bonuses which are a ruse to lure customers in. Here are some tips to avoid falling victim to such scams: Know your rights, look for fake documents and excessive cash bonuses. These are signs of a scam broker.
Recovering client funds from a scam broker
The process of recovering client funds from a scam broker is not an easy one. It involves gathering evidence and working hard. Small deposits are easy to recover, but larger deposits can be harder. Oftentimes, the broker will transfer your funds elsewhere before you can get them back.
Luckily, there are ways to recover the funds. Firstly, you can contact the broker’s bank. Some scammers will contact you by phone or email asking you to pay an upfront fee to recover the client’s funds. Be careful of these types of scams, as they target those who have already fallen victim to other types of fraud.
The next step is to report the scam to the appropriate authorities. You can also use your credit card to make a chargeback. If the broker refuses to accept a chargeback, the bank may reverse the payment. If you cannot get the money back, it is best to use your credit card to report the scam.
If you have evidence that shows that the broker is committing fraud, you can contact your region’s trading regulatory body. The NFA, for instance, has a website dedicated to reporting trading fraud. If you’re able to prove your case, the broker may lose its license and face massive penalties. In most cases, the broker will refund the money.
Spot a scam broker by looking for excessive cash bonuses
Scam brokers often use excessive cash bonuses as a way to lure novice traders. These brokers operate out of a single bank account and may use clients’ money to boost their operations. If they use your money to boost their operations, you should be wary, because your funds could end up being lost in the process.
Avoiding a scam broker by looking for fake documents
Be on the lookout for fake documents. These documents could be anything from phony email addresses to documents that look exactly like the documents you’re used to receiving. Some scams even use the letterhead of a legitimate insurance company. This makes it easier for the scammer to fool people.