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  • Writer's pictureLEE FISHER

CFD - Unregulated Companies​

It’s really a sad and devastating experience for someone to fall victim to an online investment scam and lose possibly entire life savings in just a blink of an eye. Investment scams aim to get unsuspecting people to hand over money – they can seem perfectly legitimate, appearing knowledgeable with websites, testimonials, and marketing materials.

They promise that you can withdraw your money whenever you want. But you will soon find out that’s easier said than done. Some firms will ignore your requests to access your funds outright. Others will bounce you back and forth between different departments in order to exasperate you to the point where you’ll just give up.

You can try to reach their customer service but this will be of no use. I had a similar experience where they kept transferring me to different people who tried to convince me to put in even more money. After refusing to put in more money, they stopped answering my calls and emails altogether. In the UK, a firm must be authorized and regulated by the FCA to do most financial services and activities.

If you use an unauthorized firm, you also won’t have access to the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) so you’re unlikely to get your money back if things go wrong. The answer to the question of if you can get your money back is complicated, if you lost to an unregulated company, it will be very difficult to track them, because they are using FAKE names and FAKE addresses. There is no authority that they are held accountable by. You don’t know anything about them, therefore you can’t do anything.

Going to the local police station and reporting the case will not help to get your money back, but we highly recommend contacting your local police. Even if the crime you wish to report is international in nature, you should still approach your local police. Investigations and arrests are always carried out by national and local police forces. Our role is to help your national police to communicate with police in other countries to solve international crimes.

You spent time, paid money, and eventually, you got nothing. Taking on a good lawyer also can help you because, without good intelligence, your case will be dismissed. No official governmental body will help you, as they don’t have any authority or power over those fake trading companies.

Suing the company that’s mentioned on the website or in the contract – the company that allegedly operates the website - is just a straw company.

Usually, these straw companies are located in offshore countries or basically countries where the authorities shut their eyes whenever there’s a financial crime.

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