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Foreign Currency Exchange Scams

Investment in the foreign currency exchange market (FOREX) is a new fraudulent promotion being developed and sold across the country through ISOs to victim investors. Investors are led to believe that they are investing in a currency futures market which is highly regulated, and a market traded in by large banks and financial institutions whose commissions for trades are no more than two or three points. The victims of these fraudulent promoters are actually being sold a position in a currency forwards market which is completely unregulated with no guarantee that the promoter has secured the forward position in the traded currency. The victim is not aware that the promoter pays the ISO a 50% commission on each deal. The victim has no chance to make a profit or to recover his/her investment.