# Forex scams: the warning signs, and how recovery scams work

> Fake brokers, signal sellers, account managers and romance-investment schemes all target forex traders. The patterns they share and what to do if you have been caught.

- Canonical URL: https://forextradingcommunity.com/news/forex-scams-warning-signs/
- Type: Guide
- Published: 2026-09-14
- Updated: 2026-09-14
- Publisher: Forex Trading Community (https://forextradingcommunity.com), FTC Editorial Team
- Currencies: USD, EUR, GBP

Fraud is a constant risk around currency trading, because the promise of fast returns is easy to sell and hard for newcomers to check. Most scams follow a small number of patterns.

## Common schemes

**Account managers.** Someone offers to trade your account for you, often for a share of profits. The account shows early gains, you deposit more, and the money becomes impossible to withdraw.

**Fake brokers and apps.** A professional-looking website or app shows balances and trades, but no real trading takes place. Some copy the details of genuine firms; see [clone firms](/news/how-to-check-if-a-forex-broker-is-regulated/).

**Signal and course sellers.** Groups on messaging apps sell "guaranteed" signals, often with cherry-picked or invented results, then push members towards a particular "broker".

**Romance and friendship schemes.** A contact built up over weeks, on social media or a dating app, introduces an investment platform. US authorities have warned about these long-con schemes, sometimes called "pig butchering".

## Warning signs

- Guaranteed or unusually high returns
- Pressure to deposit more to "unlock" profits or withdrawals
- Requests for a **fee, tax or insurance payment before a withdrawal**
- Contact that moves quickly to WhatsApp or Telegram
- Payments requested in crypto, gift cards or to personal bank accounts
- Offers to access your computer remotely "to help set up the platform"

## Recovery scams

After losing money, victims are often contacted by someone offering to recover it for an upfront fee, sometimes posing as a lawyer, a regulator or a law enforcement agency. **Genuine regulators don't charge fees to recover money.** A recovery offer that asks for payment first is almost always a second scam, often run by the same people.

## If you think you have been scammed

1. Stop sending money, including any "fees" to withdraw.
2. Contact your bank or card provider straight away; some payments can be disputed.
3. Report it to your national financial regulator and the police.
4. Keep records: messages, websites, transaction details.
5. Warn others without sharing personal details, for example in FTC's [community](/community/?category=broker-experiences).

## Protecting yourself

- Check any firm on the regulator's register and on warning lists such as IOSCO's I-SCAN before you pay.
- Never give anyone remote access to your devices or trading accounts.
- Remember that FTC staff will never ask for money, passwords or access to your account.

## Sources

- [FCA: warning over clone firm investment scams](https://www.fca.org.uk/news/press-releases/fca-scamsmart-warning-clone-firm-investment-scams)
- [FCA: Warning List of unauthorised firms](https://www.fca.org.uk/consumers/warning-list-unauthorised-firms)
- [IOSCO: I-SCAN alerts network](https://www.iosco.org/i-scan/)
- [CFTC: forex fraud advisory](https://www.cftc.gov/LearnAndProtect/AdvisoriesAndArticles/FraudAdv_forex.htm)

## Common questions

### Why do scam brokers ask for a fee before withdrawal?

To extract more money. Genuine brokers deduct any fees from your balance and don't demand separate tax or unlock payments before releasing a withdrawal.

### Can someone recover money lost to a forex scam for a fee?

Be very careful. Upfront-fee recovery offers are a common second scam. Contact your bank, your regulator and the police directly instead.

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This article is for information only and is not financial advice. Trading forex and CFDs carries a high risk of losing money.