Lesson 1 of 7 · 8 min
How forex scams work
The stages a typical forex scam moves through, why the profits on screen are not money, and the check that stops each stage.
By the end you'll be able to
- Describe the stages a typical forex scam moves through
- Explain why a balance on a platform is not money until you can withdraw it
- Name the check that stops a scam at each stage
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- 7 short lessons with quizzes and interactive tools
- Lesson videos for members
- A certificate when you finish
A friendly stranger, a platform that shows a 40% gain in two weeks, and then a “tax” to pay before you can withdraw. The details change from one scam to the next, but the order of events barely does.
The path a scam follows
Stage 1 of 7
Unsolicited contact
A stranger messages you on Instagram or Telegram, or an advert promises steady monthly returns. The contact is friendly and patient, and nobody mentions money for days.
The check that stops it: Regulated firms do not recruit through strangers’ direct messages. You can stop here.
Paid in so far: $0
Stage 2 of 7
Trust and proof
Screenshots of winning trades, a group full of happy members, a “mentor” who answers at midnight. The praise and the screenshots can all be staged.
The check that stops it: Ask for every trade, from a source the seller does not control. Screenshots are not a record.
Paid in so far: $0
Stage 3 of 7
A small first deposit
You are sent to a platform: an offshore broker, or a site the scammers run themselves. The first deposit is small, $300, so trying it feels safe.
The check that stops it: Search the regulator’s register for the company before any money moves. If the payee is a person or a crypto wallet, stop.
Paid in so far: $300
Stage 4 of 7
Profits on screen
The account shows quick gains. On a fake platform the balance is a number the operator types in; there may be no trades in any real market.
The check that stops it: A balance is real only when you can withdraw it. Test a withdrawal before adding anything.
Paid in so far: $300
Stage 5 of 7
Pressure to add more
“Scale up before the opportunity closes.” You add $3,000. Bonuses, VIP tiers and deadlines hurry the decision.
The check that stops it: A deadline on a deposit is your cue to slow down and check.
Paid in so far: $3,300
Stage 6 of 7
Withdrawal blocked
You ask for your money. First there is a “tax”, a “verification fee” or an “anti-money-laundering deposit” to pay: $900, then $1,500.
The check that stops it: Real brokers deduct fees from your balance. Paying new money to release old money is the scam itself.
Paid in so far: $5,700
Stage 7 of 7
The recovery offer
Once the platform goes silent, a “recovery agency” or “lawyer” gets in touch. It can trace your funds, it says, for $1,000 up front.
The check that stops it: Recovery firms that charge in advance are usually the same scam again. Go to your bank, the police and the regulator.
Paid in so far: $6,700
A typical path, with illustrative amounts. Tap a stage to see what happens and the check that would have stopped it.
Each stage asks for a little more than the one before, and the money only ever moves one way. Nobody asks for $6,700 in the first message. They ask for a chat, then $300, then $3,000, then fees.
Two words come up throughout. An offshore broker is registered in a small jurisdiction that supervises it lightly or not at all, so the regulation you would rely on is missing. A fake platform is a trading screen run by the scammers themselves: prices may look real, but your trades never reach a market and your balance is whatever they type in.
What every stage has in common
Look at the checks under each stage. They come down to two questions:
- Where is the money going? It should go to a licensed company whose name you have found on the regulator’s own register. A person, a card, a crypto wallet or a company with a different name fails.
- Why the hurry? Deadlines, “last places” and bonuses that end tonight exist to stop you asking the first question.
A scam needs you to skip one of those checks once. You can stop it at any stage, and the earlier you stop it, the less it costs.
Try it
Tap every line you think is a warning sign.
Warning signs found: 0 of 5
A made-up example. Names, numbers and web addresses are fictional; patterns like these are common in real scams.
Tap the lines you think are warning signs, then check the ones you left alone: some ordinary lines look friendly, and friendliness on its own proves nothing.
Quick check
Quick check
Question 1 of 4
A platform shows your $3,000 deposit has grown to $9,000. What does that prove?
Question 2 of 4
Before a withdrawal, you are asked to pay a 10% tax from new money. This is:
Question 3 of 4
Which single check would have stopped the scam earliest and at no cost?
Question 4 of 4
A deposit is to be paid to an assistant's card or a crypto wallet. You should:
Go deeper: Forex broker scams: 9 red flags and how to check a licence · Forex deposit bonus: why it’s usually a bad deal · How to check a broker before you deposit