Two US men, Patrick Gallagher, 44, of Middleborough, Massachusetts, and Michael Dion, 49, of Orlando, Florida, both pled guilty to one charge of conspiracy to commit financial crimes in a foreign exchange operation that spanned a decade.
Forex: Is it a con?
The world's currencies are traded on the Forex market, a credible platform. It would be tricky to trade the currencies required to pay for imports, sell exports, travel, or conduct cross-border business without the Forex market. However, because there is no centralized or regulated exchange and massive leverage positions (which theoretically have the potential to earn traders a lot of money), are available, con artists use the scenario and rookie traders' desire to join the market.
Since the forex market is a 'zero-sum' market, in order for one trader to profit, another dealer must lose money. As a result, the forex market does not by itself increase market value.
About the Scam
According to the Department of Justice, hackers established a fake organization called Global Forex Management and lured investors by assuring them large profits based on falsified trading performances from the past.
Hackers alleged that IB Capital, the business of a conspirator, would use an online trading platform to trade the victims' money. Rather, Gallagher and Dion were stealing the money from the victim investors while collaborating with other criminals in the Netherlands.
Gallagher and Dion carried out their scheme in May 2012 by deliberately setting up negative trades for the investors, effectively stealing $30 million from their victims.
After fabricating the enormous trading loss, Gallagher and Dion used shell businesses they had built up all across the world to transfer the stolen funds.
How can we detect a forex scam?
Learning how to correctly trade on the Forex market is the single most crucial thing a person can do to avoid getting conned. Finding reliable Forex brokers, on the other hand, is a challenge in this situation. Before trading with real money, practice making long-term profits on demo accounts. Be aware that it can take years to thoroughly learn the Forex trade, just like it does with any professional ability. Avoid any claim that suggests 'you can generate money quickly.'
Furthermore, don't accept the assertions made at face value; instead, take the time to conduct your own investigation. The legitimacy of the business that makes the claims or offers the course or expertise is something else a person might wish to investigate.
