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Forex Scams on the Rise

Discussion in 'Forex Articles' started by Arjuna, Jul 6, 2009.

  1. Arjuna

    Arjuna Recruit

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    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.
     
  2. Pharaoh

    Pharaoh Colonel

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    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.
     
  3. fxfrench

    fxfrench FXOpen AU Representative

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    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 :eek:oh:
     
  4. Pharaoh

    Pharaoh Colonel

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    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.
    :D
     
  5. geoffrey

    geoffrey Private, 1st Class

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    The Struggle Should Also Be On The Rise

    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.
     
  6. ernest8fingers

    ernest8fingers Master Sergeant

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    ok

    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.:p
     
  7. vans22

    vans22 Private, 1st Class

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    :):D
    Well that's what we call GOOD news.We should support them (CFTC) in any way we can!
     
  8. pepper1

    pepper1 Private

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    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.
     
  9. praetserge

    praetserge Recruit

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    It's no surprise, as public interest grows in forex trading scammers will be looking to exploit it.
     
  10. marcus1rex

    marcus1rex Private

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

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