Don’t Get Scammed: A Roundup of Common Online Fraud Tactics in Forex

Online fraud is evolving fast—and the forex industry remains one of the most heavily targeted sectors. From clone brokers to fake trading bots, scammers are crafting increasingly sophisticated traps to deceive unsuspecting investors.

Whether youre new to forex trading or already active, understanding these common scam strategies is your first line of defense.

Fake Broker Websites Disguised as Licensed Firms

One of the most notorious tricks in the forex world is the use of clone websites. Scammers copy the name, logo, and even the company registration number of a real, regulated broker, and launch a fake site under a similar domain—often ending in .live, .net, or .org instead of the official .com.

These sites look legitimate, complete with fabricated license certificates and customer reviews. Victims are lured into depositing funds, thinking they‘re trading with a trusted broker. By the time they realize something’s wrong, their money is gone—and so is the website.

Check every broker on WikiFX before you trade.

Investment “Managers” Offering Guaranteed Returns

You might receive a message on WhatsApp, Instagram, or Telegram from someone claiming to be a professional trader or fund manager. They promise guaranteed profits—usually 30–50% in just a week—and ask you to deposit funds into their wallet or “platform.”

These are advance-fee scams. Once you deposit, you may see fake returns displayed on a dashboard, but youll never be able to withdraw. More fees are demanded for “unlocking profits” or “tax clearance,” keeping victims trapped in a cycle of payment.

Romance Meets Trading: The Pig-Butchering Scam

Known as “pig butchering”, this long-game scam begins on dating apps or social media. The fraudster builds trust through fake intimacy and gradually introduces you to forex or crypto trading, showing screenshots of massive gains.

They guide you to a fake trading platform (often under their control), help you “invest,” and even allow small early withdrawals to build confidence. Eventually, large deposits are made—only for the platform to freeze or disappear altogether.

Impersonating Regulators and Recovery Agents

After losing money, many victims search for help. Thats when another scam starts: fake regulator emails or recovery services claiming they can retrieve your lost funds—for a fee.

These fraudsters often use names similar to actual regulators like FCA, ASIC, or CySEC. They may send official-looking letters, but they have no legal authority and are only after additional payments.

Remember: Real regulators never offer fund recovery services.

AI Trading Bots and Copy Trading Traps

In the AI era, scammers now push automated trading bots, claiming theyre powered by machine learning and capable of generating passive profits.

Some platforms are legitimate, but many are not. If a site guarantees consistent profits, has no risk disclosures, or lacks a clear licensing status—its a red flag. Always verify if the provider is listed in a public register like ASIC Connect or the FCA Register.

No Withdrawal, No Support—The Classic Exit Scam

Many fraud platforms allow deposits but block withdrawals. Victims are told they must pay a clearance fee, upgrade to a premium account, or provide personal documents theyve already submitted.

Eventually, the broker‘s support becomes unreachable, and your account gets frozen. These are exit scams—and they’ve grown more frequent during market booms.

Final Tips: How to Stay Safe in the Forex Market

• Always verify a broker‘s license using tools like WikiFX’s regulator checker.
• Avoid platforms with guaranteed returns or vague business models.
• Stay away from offers on social media—no professional broker will DM you for investments.
• Report fraud to your national financial regulator as soon as possible.