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A forex scam is any trading scheme used to defraud individual traders by convincing them that they can expect to gain a high profit by trading in the foreign exchange market.S.S." âIn a typical case, investors may be promised tens of thousands of dollars in profits in just a few weeks or months, with an initial investment of only $5,000.S. Now if people go online, on non-bank portals, how is this control being done?".. Commodity Futures Trading Commission. "The average individual foreign-exchange-trading victim loses about $15,000, according to CFTC records" according to The Wall Street Journal. Often, the investorâs money is never actually placed in the market through a legitimate dealer, but simply diverted â stolen â for the personal benefit of the con artists. The U. But "the market has long been plagued by swindlers preying on the gullible," according to the New York Times . Commodity Futures Trading Commission (CFTC), which loosely regulates the foreign exchange market in the United States, has noted an increase in the amount of unscrupulous activity in the non-bank foreign exchange industry. CNN quoted Godfried De Vidts, President of the Financial Markets Association, a European body, as saying, "Banks have a duty to protect their customers and they should make sure customers
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