The latest in the long line of Forex scams in India was the case of a software professional who was cheated by cyber criminals who posed as executives of a Mumbai forex trading company and promised high returns on investment in the foreign exchange market. The 48-year-old, who works for a multinational software firm in Pune, contacted the Cyber Crime Cell of Pune City Police. A preliminary inquiry led to the registration of an FIR at Hinjewadi police station.
The Indian regulator SEBI has stepped in to crack down on forex scams and cryptocurrency frauds. It is expected that more people will fall victim to these frauds and that more fraudsters will join the fray. The case of Ashok Kumar has prompted the authorities to continue cleaning up the forex and cryptocurrencies space in India. But even as Indian regulators try to curb the rising number of these pranksters, they still suspect that there are many more scams to come.
The Indian police have outlined a few tips to avoid becoming a victim of Forex scams. First and foremost, it is vital that you pick a registered Forex broker. The best way to avoid falling victim to a Forex scam is to use a regulated broker. If the Forex company is not regulated, it’s not credible. Second, don’t invest with a company that offers excessive spreads. The spreads in Forex scams are often seven or eight pips, compared to two to three pips.