The Truth Behind Forex & Crypto Scams: How to Check a Broker and Stay Safe
Fake brokers, cloned firms and 'guaranteed' returns. How forex and crypto scams work, and the official registers in Singapore, Australia and Sweden to check first.
Online trading scams have become one of the most costly forms of fraud worldwide. Fake forex brokers, fraudulent crypto platforms and "investment mentors" on social media and dating apps take billions from victims every year. The good news: a few minutes of checking can expose most of them.
How the scams work
- Fake platforms show impressive profits on screen, then block withdrawals or demand "fees" to release funds.
- Clone firms copy the name and details of a real, licensed company.
- Romance and "pig-butchering" scams build trust over weeks before steering victims to a fake platform.
- Guaranteed returns: legitimate trading never guarantees profits.
Check the official registers first
Before depositing money, check that a firm is authorised in your country, and that the website and contact details match the official record exactly:
- Singapore: the Monetary Authority of Singapore's Financial Institutions Directory and its Investor Alert List of unregulated entities.
- Australia: ASIC's professional registers, and ASIC's Moneysmart guidance on investment scams. ASIC regularly takes down scam websites.
- Sweden: Finansinspektionen's company register and its warnings about unauthorised firms.
- UK and EU: the FCA register and warning list, and your national regulator.
Independent resources
Independent review and warning sites can add useful context, such as complaint histories and withdrawal problems reported by other traders. One example is ScamBrokersReview.com (a partner site). Treat any review site as a starting point and always confirm with the official regulator.
Red flags
- Pressure to deposit quickly or "not miss out".
- Requests to pay in crypto or via gift cards.
- Unsolicited contact through social media or messaging apps.
- Withdrawal problems or new fees to release your money.
If you have been scammed
Stop sending money, contact your bank immediately, and report the scam to the police and your national regulator. Be wary of "recovery" services promising to get your money back for a fee: many are scams too.
