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Problem XM GLOBAL LTD - Allowing fraudulent transactions then refused to refund

I am having an issue with a company

user_aaa

Recruit
Messages
2
Hello fellow members,

I wish to share my story and seek any guidance on this matter.

Last year, I began learning to trade and decided to open an account on XM. My account on this broker, "XM," only has an average equity in the tens, rarely surpassing a hundred, as I am using it solely for learning purposes. Consequently, the trade volume has always been small, around 0.01 to 0.05.

Then this issue occurred:

While I was away at work, there was unauthorized access to my personal laptop, resulting in a large order and multiple significant deposit activities. Upon checking the transaction activity, I discovered multiple unauthorized deposit transactions totaling up to $5000. Additionally, there were numerous high-volume order activities (up to 4 Lots).
This should have raised a suspicious activity flag, but i did not received any notification nor confirmation attempt for this activity.

I immediately contacted their live support upon becoming aware of this matter, and they suggested sending an email to their customer service.

After a couple of days, the only response I received was an email titled "Important Notice: Termination of Business Relationship," containing no details or useful information whatsoever.

[Quote email: "Important Notice: Termination of Business Relationship"]
""
Important Notice: Termination of Business Relationship
Dear Sir/Madam,

We are writing to you regarding your trading account(s) at XM.

We regret to inform you that pursuant to the termination section of our Terms and Conditions of Business, this email is our official notice of termination of our business relationship with you.

Please note that your trading account(s) will be temporarily suspended for the next seven calendar days and then permanently disabled. This means that in case of deposits/remaining balance, this amount will be refunded to the same source that the deposit was made from.
Kind Regards,

XM Compliance
""


I replied to this email demanding an explanation but received no response. The only response I received was from their customer service, stating:

"Even though we ensure the security of your funds, it is your responsibility to secure your account information, and there is nothing we can do about this. Since there is no fault on our end, there will be no reimbursement."

I had believed they cared about "protecting client funds" and would ask for confirmation from clients on any suspicious activity, as they reiterated this multiple times in their own Terms and Conditions of Business regarding deposit activity.

Here i attached their own TnC claiming they have to confirm to the Client regarding deposit, or to set a deposit limit in case of suspicious activity.


XMGlobal - Client Agreement, Terms and Conditions of Business,

Payment Section, point 65.5 :

"65.5 If you make a payment/deposit, we shall, without prejudice to any other provisions of this Agreement, use our best efforts to credit your Account with the amount of such payment within one (1) Business Day following the day on which the deposit has been accepted, if we are satisfied that you are the sender of the funds. At any given time, if we are not satisfied that you are the sender of the funds deposited in your Account, we reserve the right to reject such funds and/or return them to the remitter net of any transfer fees or other charges."

Deposit Section point 67.2 :

"67.2 You agree that any funds transmitted to our bank accounts by you or, where permitted, on your behalf, will be deposited into your Account with us at the value date of when they were received by us and net of any charges/fees charged by the bank account providers, our payment service providers and/or any other intermediary involved in such transaction process. Before accepting any such funds into our bank accounts and/or making any such funds available in your Account with us, we must be fully satisfied that you, as our client, are the sender of such funds, or that such funds have been transmitted to us by an authorized representative of you, as our client; in those instances where we are not satisfied that you, as our client, are the sender of such funds, or that such funds have been transmitted to us by an authorized representative of you, as our Client, we reserve the right to refund/send back the net amount received to the same remitter from, and by the same payment method through which such funds were received. "

Deposit by Credit / Debit Card Section, point 68.3 :

"68.3 The Company takes the protection of its clients very seriously and has various systems, controls and tools set in place for their protection against credit / debit card fraud and so as to be in compliance with all applicable anti-money laundering regulations. The systems, limits and controls that the Company applies for the prevention and/or identification of credit / debit card fraudulent activity may include, but are not limited to, the following:
a. Limits on the number of transactions allowed within a certain timeframe; and/or
b. Limits on the amounts allowed to be deposited within a certain timeframe; and/or
c. Limits on the amounts allowed to be deposited per transaction; and/or
d. Limits on the amounts allowed to be deposited per registered email address; and/or
e. Limits on the amounts allowed to be deposited based on the country the money is coming from; and/or
f. Limits on the number of credit cards allowed per client; and/or
g. Limits on the deposit attempts allowed per email address; and/or
h. Restrictions on the number of email addresses allowed to be connected with a single credit card; and/or
i. 3D secure authentication for the processing of transactions; and/or
j. Checks for matching details.

In the case that the Company’s systems and tools, as well as the systems and tools of the Company’s payment service providers, identify a violation of the above limits and restrictions and/or clients fail to pass the security and authentication checks, the appropriate measures are taken in order to prevent possible credit / debit card fraudulent activity and ensure company’s protection. These measures may include, but are not limited to, the following:
a. Investigations, further checks and/or request for additional documentation in order to verify the credit card details and ensure that you are the legitimate owner/user of the credit card(s) used;
b. Delay of transactions’ processing due to the investigations taking place;
c. Refusal of credit card deposit(s) in question and refund of the net amount deposited to the same credit card account and via the same payment method through which the deposit(s) was made;
d. Cancellation of fraudulent transactions as soon as they are detected;
e. Block access to our Online Trading Facility, blocking and/or revoking your Access Codes and/or terminating your Account(s);
f. Seize any profits and/or revenues generated directly or indirectly by exercising any such prohibited trading activity and cancel any Account(s) and active Orders associated with the credit card that has been identified as fraudulent;
g. Deny processing transactions exceeding the limits/restrictions and/or failure to pass the security and authentication checks."

Deposit by Credit / Debit Card Section, point 68.3 :

"68.4 Please note that it is a serious criminal offence to provide false or inaccurate information during your credit / debit card registration. Therefore, before we accept any credit / debit card deposits and/or making any such credit / debit card deposits, we must be fully satisfied that:

(a) you are the legitimate owner/user of the credit / debit card used; and
(b) it is you, as the legitimate owner/user of the credit / debit card, who is making and/or authorizing the deposit by credit / debit card.

In those instances where we are not satisfied of the above
, we reserve the right to refuse the credit / debit card deposit(s) in question and to refund/send back the net amount deposited to the same credit / debit card account and via the same payment method through which such deposit(s) was/were made. Fraudulent transactions are immediately cancelled after being detected. Under such circumstances, we reserve the right, at our sole discretion, to take all action as we see fit, including, without limitation, completely blocking access to our Online Trading Facility, blocking and/or revoking your Access Codes and/or terminating your Account. Furthermore, we reserve the right to seize any profits and/or revenues generated directly or indirectly from exercising any such prohibited trading activity and we shall be entitled to inform any Interested third parties of your breach of this clause. Any active Orders associated with the same fraudulent credit / debit card and/or Account will also be cancelled immediately. We have, and will continue to develop any tools necessary to identify credit / debit card fraud. Any dispute arising from such fraudulent activity will be resolved by us in our sole and absolute discretion, in the manner we deem to be the fairest to all concerned and that decision shall be final and/or binding on all participants; no correspondence will be entered into."



Would appreciate any help, thanks!

Regards,
 

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Before this took place....how much total did you deposit with XM?

While I was away at work, there was unauthorized access to my personal laptop, resulting in a large order and multiple significant deposit activities. Upon checking the transaction activity, I discovered multiple unauthorized deposit transactions totaling up to $5000. Additionally, there were numerous high-volume order activities (up to 4 Lots).
based on this statement, it appears that your laptop was compromised. Likely either by XM employee or referral, but this would be difficult to prove if more evidence is not provided.

- What are the specs of your computer (processor type/speed, make, model #, RAM, sdd TB/GB?
- Has anyone recently had remote access to your computer (over last year)?
- Do you have any logs from your firewall indicating IP address or software that was used to gain remote access.

But only XM themselves and/or partner referring to XM would have an incentive to do this in my opinion, as they are the only ones that benefit from it.

-----

-> Can you please upload full account statements for all accounts you have with XM? Use this guide:

 
Before this took place....how much total did you deposit with XM?


based on this statement, it appears that your laptop was compromised. Likely either by XM employee or referral, but this would be difficult to prove if more evidence is not provided.

- What are the specs of your computer (processor type/speed, make, model #, RAM, sdd TB/GB?
- Has anyone recently had remote access to your computer (over last year)?
- Do you have any logs from your firewall indicating IP address or software that was used to gain remote access.

But only XM themselves and/or partner referring to XM would have an incentive to do this in my opinion, as they are the only ones that benefit from it.

-----

-> Can you please upload full account statements for all accounts you have with XM? Use this guide:


Total deposits amount to around $9000, but withdrawals are also around $9000 because I always withdraw the balance once I am done for the day. Additionally, my last equity the day before this incident was around $130.

1. I have a MacBook M1 Pro.
2. No, none that I am aware of.
3. How can I obtain these logs?

I can't retrieve the full history from the meta right now since they immediately terminated all of my accounts after I reported this incident.
Also, they didn't even provide any information on why they needed to terminate, not even a reply when I asked on their termination email.
 
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