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[Arjuna]

Forex scams on the rise

With a new task force on the beat,
CFTC actions against forex scammers are on the rise in 2009.

By Chris Peters

There has been an uptick in the number of new forex
fraud cases uncovered by the Commodity Futures
Trading Commission (CFTC) so far in 2009. In the first half
of the year, the CFTC has issued orders in approximately 10
cases involving foreign currency fraud.
In August 2008, the CFTC announced the formation of a
retail foreign currency fraud task force, which is charged
with investigating and litigating fraud in the off-exchange
forex market. The announcement came following the
approval of the Food, Conservation, and Energy Act of
2008, which strengthened the
CFTC’s oversight of the offexchange
currency markets and
granted the CFTC rulemaking
authority. It also authorized the
CFTC to bring fraud actions in offexchange
futures transactions and
increased the civil and criminal
penalties for manipulation and false
reporting.

When the task force was
announced, the CFTC said that in
the approximately eight years
between the enactment of the
Commodity Futures Modernization
Act in 2000 and the formation of the
task force in 2008, nearly 100
enforcement actions were filed
against firms and individuals for
fraudulent activities in the forex
market. Those actions resulted in
fines in excess of $560 million and
the restitution of $450 million in
investor losses.

Despite the creation of the task
force, there appears to have been a
lull in enforcement proceedings in
2008, with only three actions taken
against foreign currency scammers
that year. In 2007, 12 actions had
been filed, and there were a total of
seven in 2006. In 2009, however, the
pace has picked up.

[Pharaoh]

I'm glad to see the CFTC is finally stepping up enforcement. All sorts of frauds and scams will be on the rise now as the economic crisis reaches more and more people. When someone is desperate, they will WANT to believe the lies the criminals tell.

[fxfrench]

The announcement came following the approval of the Food, Conservation, and Energy Act of 2008, which strengthened the CFTC’s oversight of the offexchange currency markets and granted the CFTC rulemaking authority.

Agreed, it is a good thing the CFTC has the intention of cleaning up the forex market in the US, however one must question the way their authority was granted by the passing of what is essentially and agricultural bill of law which actually has little to do with the currency markets

[Pharaoh]

You missed out on one of the oddities of the American government system. Since the CFTC was created initially to look at futures, and since many futures are for food products, it derives a a certain amount of its pmandate from the Department of Agriculture.

Congress also has a bad habit of jamming totally unrelated things into a bill so that members have to vote the whole package up or down. It makes it simpler to pass something if there are some goodies for each state and congressional district lumped into an unrelated bill.

I recommend drinking some USA made grain alcohol before pondering this too closely. Of course, that will get you involved with the Department of Agriculture as well as the BATFE. Why explosives and firearms are regulated by the same bureau as alcohol and tobacco is another one of those things where I recommend a stiff drink before exploring the finer details.

[geoffrey]

The struggle to counteract the rising scams in the forex market by men in arms should and must also be on the rise. We must device strategies good enough to overcome the rising scammers. We must not leave everything in the hands of the regulatory bodies alone.

[ernest8fingers]

Originally Posted by geoffrey

The struggle to counteract the rising scams in the forex market by men in arms should and must also be on the rise. We must device strategies good enough to overcome the rising scammers. We must not leave everything in the hands of the regulatory bodies alone.

Nice words-now what are your ideas? I exercise my freedom (so far) by removing all my assets offshore. My tax liability will shrink to near zero. So will millions of my fellow Americans. This(USA) is becoming a global debtor welfare country where no one has job even if they wanted one. I am still shocked that decades of prosperity and global dominance has evaporated almost overnight. Personally, I cant wait for the coming government meltdown. Its long overdue. I do want to say one thing on Forex scammers- when u send your money to strangers in a strange land(like me), u are still at the mercy of your Broker to release your money when u want. Just study this forums list of BrokersReviews .
Dont place any funds with Brokers on the Scam list. Dont place funds with Brokers that have MANY negative reviews. It matters less on WHERE your Broker is located then how they treat their clients. Check this forums review posts and that should tell it all. In time(hopefully) those bad Brokers will die.

[vans22]

Originally Posted by Arjuna

Forex scams on the rise

With a new task force on the beat,
CFTC actions against forex scammers are on the rise in 2009.

By Chris Peters

There has been an uptick in the number of new forex
fraud cases uncovered by the Commodity Futures
Trading Commission (CFTC) so far in 2009. In the first half
of the year, the CFTC has issued orders in approximately 10
cases involving foreign currency fraud.
In August 2008, the CFTC announced the formation of a
retail foreign currency fraud task force, which is charged
with investigating and litigating fraud in the off-exchange
forex market. The announcement came following the
approval of the Food, Conservation, and Energy Act of
2008, which strengthened the
CFTC’s oversight of the offexchange
currency markets and
granted the CFTC rulemaking
authority. It also authorized the
CFTC to bring fraud actions in offexchange
futures transactions and
increased the civil and criminal
penalties for manipulation and false
reporting.

When the task force was
announced, the CFTC said that in
the approximately eight years
between the enactment of the
Commodity Futures Modernization
Act in 2000 and the formation of the
task force in 2008, nearly 100
enforcement actions were filed
against firms and individuals for
fraudulent activities in the forex
market. Those actions resulted in
fines in excess of $560 million and
the restitution of $450 million in
investor losses.

Despite the creation of the task
force, there appears to have been a
lull in enforcement proceedings in
2008, with only three actions taken
against foreign currency scammers
that year. In 2007, 12 actions had
been filed, and there were a total of
seven in 2006. In 2009, however, the
pace has picked up.

Well that's what we call GOOD news.We should support them (CFTC) in any way we can!

[pepper1]

it's up investors to seperate the wheat from the chaff, it's just unfortunate that some are not good at separating fact from fiction only to be exploited again and again by perpetrators of fraud.

[praetserge]

It's no surprise, as public interest grows in forex trading scammers will be looking to exploit it.

[marcus1rex]

yeah, that's why windows has many viruses compared to macs, lol!