In this article we would like to draw your attention to such a popular topic as the return of funds from a broker through the “Chargeback” operation. We will tell you about the general deception scheme that most fraudulent chargeback companies use.
Typically, such companies post information on their website that allows them to return money to investors who have encountered deception from dishonest Forex or binary options brokers .
Chargeback procedure
The chargeback procedure can return up to 100% of the funds that investors lost by transferring management to dishonest Forex brokers or binary options brokers . Help is provided to people from Russia and abroad. However, there is usually no exact information about how money is returned on fraudulent sites. You can only see the text that they will allegedly draw up an application for you to a bank or payment system, preparing all the necessary documents for you.
How chargeback SCAM work
The essence of the work of chargeback scammers comes down to the following: company employees find and contact people who have lost money interacting with dishonest brokers . Next, such investors receive an offer to return all funds. But to do this, people must open an account with the company and make a deposit with a certain amount.
As soon as a person fulfills these requirements, the second stage begins. Employees of the fraudulent chargeback company send letters to their “clients”, repeatedly informing them that money from dishonest brokers will be returned in the near future. But in order to receive funds, the defrauded investor must pay insurance, the amount of which varies between 10-30% of the previously lost amount.
If the “client” agrees to this, then after a few days another email message is received indicating that the bank has already received the transfer of the lost amount (and a supposed payment order confirming this information will be attached). The deceived investor in this situation calms down, because he knows that the money will soon be returned.
But the chargeback scams don't stop there. In the next letter, supposedly sent by the Russian Currency Control Service, the deceived investor learns that the transfer to the bank account was “frozen”, since this operation was carried out in violation of current legislation. To lift the arrest, a person must pay a fine, that is, add more money for his attempt to return the money from the broker. In reality , there is no such service in Russia . More precisely, the concept of Currency control exists, but it has a completely different meaning, namely “ Currency control is a set of government regulation measures aimed at ensuring the development of the national economy and the financial security of the state. ”
Moreover, having paid the fine, the defrauded investor receives another letter in which the same “service” informs that the manager with whom the person communicated is also a fraudster. And he is not an employee of this organization. Accordingly, the fine was not paid.
Deceived investors will continue to receive such letters in the future if they continue to comply with such requirements. After all, the main goal of the fraudulent chargeback program is to extract as much money from people as possible.
Amounts of payments for chargeback operations
The amount of “mandatory” payments in a fraudulent chargeback program varies within fairly wide limits, which are determined depending on the amount returned. One of the company’s clients first deposited $3.2 thousand and then paid two fines of $2 thousand and $500, respectively. Total losses amounted to 5.7 thousand dollars.
Conclusion
When trying to get their money back from a fraudulent broker, the trader may lose an even more significant amount of money. The chargeback procedure is very complicated and is used mainly in interbank transactions. You most likely will not be able to return money from the broker this way, so choose a broker for trading wisely, first read all the reviews about it and only then deposit money into your account. Be sure to read our article “ how to choose a binary options broker ” or choose an already proven, reliable broker from our rating of the best binary options brokers .
Well, if you are interested in returning money from brokers, then we recommend that you use the cashback and rebate service LetyBrokers , which allows you to return up to 50% of lost funds without additional payments and operations, the entire procedure for returning funds is similar to cashback when purchasing goods in stores.
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