What to Do if You Are Scammed by a Broker
When a broker deceives, a trader must do everything possible to recover the money. The course of action depends on the situation. There are 3 cases when it’s necessary to file a police report:
- The intermediary is not registered as a legal entity.
- Money was sent to the broker not from a bank account or card.
- More than 540 days have passed since the funds were transferred to the intermediary (if they were sent from a card).
What to do when a fraudulent broker is registered as a legal entity (in any country), the trader sends funds to them through a bank transfer or card, and less than 1.5 years have passed since the transaction? In such a case, the chances of resolving the situation without involving the police or court and recovering the capital through banking mechanisms and chargebacks are very high.
Deceived by a broker — how to recover money
You want to make a withdrawal, but the intermediary rejects each request and demands you to gather a package of documents to confirm your identity every time? This is a scam scheme.
How to make a withdrawal from a fraudulent broker? The first step is preparation. The trader’s tasks include:
- Installing software to record conversations and video calls.
- Taking screenshots of all conversations, balances, withdrawal request sections, service agreements, and user agreements. Has the broker scam blocked the “Personal Cabinet”? Take a screenshot of that too.
- Removing any fraudulently installed programs from your computer that give the scammer remote access. Otherwise, they might remotely delete conversations, screenshots, and other evidence of the scam.
The next step is to send a complaint to the broker. Did they block the “Personal Cabinet”? Be sure to mention this.
Most likely, the scammer won’t respond. After 10 days, send them a unilateral termination notice of the contract. Demand the return of all payments based on Article 450 of the Civil Code of the Russian Federation, Part 1, Paragraph 2.
After this, the financial broker who deceived you will contact you. They will threaten and beg you. Again, they will demand money.
Attention: other scammers might start writing and calling. They might impersonate police officers and bankers. The trader’s task, who wants to withdraw from a fraudulent broker, is to not agree to anything. Also, record all negotiations and threats. These are important evidence of the scam.
Recovering a bank transfer or card transaction from the broker
A trader who has been cheated out of money will be helped by the claims department of the financial institution they used, i.e., the issuing bank. To file a complaint against the broker with all the evidence, you need to request an account statement. It will prove the fact of sending money to the forex scam.
It’s important to identify the acquiring bank where all the money went. You can do this by requesting information from your own bank. If the document (in the MCC field) contains any number other than 6211 (the only code related to financial services), mention this in your complaint. The broker is deceiving their financial institution.
Advice: you can send a complaint to the acquiring bank with the collected evidence of the broker’s violations. This could end the matter. The forex scam will return all the money.
The question “What to do if a broker deceived you?” isn’t exhaustive. The trader’s task is to submit a dispute claim to their bank. Some financial institutions have a standard form for this, but it’s possible to proceed without it.
The next step is to wait and simultaneously deal with bureaucracy. The bank might consider the trader’s request for a refund from the fraudulent broker for up to 45 days. Then they might deny it for unfounded reasons.
Everyone who gives up makes a huge mistake. The requirements are clear, the actions are in accordance with the law. The bank refuses because its employees don’t want to do extra work. They need to be motivated.
To make the bank fulfill the demands of the deceived trader, they must write:
- A complaint about each employee of the financial institution who suggests refusing the refund from the fraudulent broker. You need to meet with the manager. If they refuse, you can complain about them to the central office.
- To the Federal Service for Supervision of Consumer Rights Protection and Human Welfare (Rospotrebnadzor). You need to complain about the entire bank.
- To the financial regulator (Central Bank of the Russian Federation).
Additionally, the deceived trader needs to leave reviews about the bank on banki.ru and contact the Association of Russian Banks (ARB).
A week after this, the bank will start doing what it should. But there are cases when the money was returned from the fraudulent broker only after submitting 6-7 claims.
How brokers deceive their clients
There are many scam schemes. If the intermediary is legal and licensed, they can:
- Manipulate quotes to trigger trades at their peak.
- Offer overly complex trading conditions.
Such a broker rarely prevents withdrawals. If law enforcement agencies intervene, they will lose much more than they can pocket.
There are brokers without registration, license, or legal entity status. These steal trader’s money with each deposit. Then they simulate trading, meaning there’s nothing to withdraw at all.
Finding the trail of such forex scams is considerably harder. They hide where they’re hard to reach, they fill their pockets through electronic payment systems or cryptocurrency wallets.
How credit brokers deceive
Black credit brokers deceive when:
- Guaranteeing credit approval. The decision to grant a loan by a bank or an MFI (Microfinance Institution) is made by an automated system. A human only reviews credit applications in disputed cases. A credit broker cannot influence them.
- They claim to be able to fix credit history. The sole role of a legitimate credit broker is to provide clients with a list of banks that would offer loans under suitable terms. Their services are only necessary for individuals who are unable to independently visit bank websites and gather information.
- They promise to forge documents (employment verification, work record book, employment contract). It’s not advisable to rely on this trick. When banks have doubts, they request information from social security or tax authorities to confirm the provided data. Forging documents can lead to real penalties.
Attention: there’s always a risk that a credit broker collaborates with black creditors. These are fraudsters who lend money at high interest rates and then resort to force for repayment.
A black credit broker charges a commission of 15-20% for their services. This is a scam. Trusted brokers charge a maximum of 2%. They also provide free consultations and do not demand a fee of ₽500 for simple advice.
Deceived by a credit broker — where to seek help
What to do if you’ve been deceived by credit brokers?
- Gather all evidence: correspondence, call recordings.
- Report the incident to the police.
This is usually sufficient to recover your capital.