CFTC Consumer Advisory: Forex Fraud

1. Promise profits, but they don't deliver — their customers lose money instead!
2. Claim most customers make money, when in fact most lose.
3. Claim to be trading customers' funds, when in fact they are stealing them.
4. Give you phony success stories from made-up customers.
5. Create fake account statements showing false trading profits.
6. Claim that they have been in business for years, when in fact it is often only months.
7. Claim to be solid and stable firms, until they disappear and leave customers' calls unanswered.

Be Alert: If you hear this....

1. "You can make six-figure profits within a year."
2. "Forex investments are very low risk."
3. "You can double your money."
4. "Mortgage your house or use your retirement funds.
   My recommendations can't miss."
5. "You will make money whether exchange rates move up or down."
6. "You must invest right now or it will be too late."

....Don't Invest!


Moving Violations

In a recent period, the CFTC filed over 80 enforcement actions in federal court against hundreds of firms, owners and employees for defrauding over 23,000 customers who lost over $300 million in these Forex schemes.
Many of these Forex fraudsters were also criminally prosecuted and are now in jail. However, the defrauded investors rarely recovered any of the funds they lost.


Consumer Advice

1. No matter what you're told, Forex trading is risky.
2. Don't be pressured into an immediate decision.
3. Use common sense.
4. Get everything in writing.
5. Check with the CFTC.
6. Seek advice from an accountant, lawyer or an independent 3rd party.
7. Don't invest more than you can afford to lose.
8. Don't mortgage your home or cash in your savings to trade Forex.

Learn More:

For information & educational materials on the legitimate foreign currency market and/or Forex fraud, call the CFTC Consumer Hotline at 1-866-FON-CFTC (1-866-366-2382) or visit website www.cftc.gov and access Consumer Protection.

Other useful resources:

1. National Futures Association: www.nfa.futures.org
2. North American Securities Administrators Association's Fraud Center: www.nasaa.org
3. Financial Literacy and Education Commission: www.mymoney.gov