Forex Scams UK - How They Work, Warning Signs and How to Get Your Money Back

If you’ve seen your profits increase through forex trading, but you are unable to withdraw, you’re not alone. Forex scams are prevalent within investing, and with UK Finance reporting that investment scam losses rose by 40% to £221.5 million in 2025, it is now more important than ever to know how to spot a forex scam.

In this article, you will learn what a forex scam is, how they work, the warning signs to watch out for, and how to get your money back if you’ve been caught in one.

What is a Forex Scam? 

A forex scam is where criminals present a fake currency trading investment and persuade victims to invest. Fake profits are shown through the platform, and pressure to deposit more and more is initiated by the fraudsters. When individuals want to withdraw, it is blocked, or the fraudsters request fees in order to release the funds.

Like many investments, you can legitimately trade in forex; however, the difference is the people behind the offering of trading. Criminals pretend to be legitimate traders to trick victims into investing in their fraudulent scheme.

How Do Forex Scams Work?

Here are some tactics that fraudsters use in forex scams: 

The initial contact

• Fraudsters may advertise a fraudulent scheme on social media or contact you out of the blue through WhatsApp, email, or phone. Once you have shown interest, they will claim to be an expert ‘broker’, ‘financial adviser’, or ‘account manager’.

Trust Building

• The scammers will appear very knowledgeable and professional within trading and will look to build trust over days, weeks, or months. They will stay in continuous contact with you to try and persuade you to invest.

Fake trading platforms

• They will show you a professional-looking trading site that matches that of a legitimate platform. The trading site will mirror real-life trades that are happening to build your trust. The fraudsters will create an account for you that you can access like any genuine site. 

Forex signals through Telegram / WhatsApp chats

• You may be added to a Telegram or WhatsApp group with other ‘investors’. The leaders of the group will send trading signals to invest in a specific trade. Many of the other ‘investor’ accounts will be controlled by the scammers.

Social media ads and fake celebrity endorsements 

• Scammers use fake celebrity endorsements to advertise their investment schemes, with 66% of investment scams starting online. The advancements in AI technology have made scams harder to spot than ever before. Report Fraud reported that there was an increase of 395% in AI-enabled fraud reports in 2025.

Clone firms / brand impersonations

• Scammers clone legitimate FCA-regulated companies to trick individuals into believing they are dealing with the legitimate firm. You can check the FCA warning list for a list of clone firms.

Romance-led forex scams

• Fraudsters recruit victims through social media or dating sites and build a relationship before presenting a forex investment. Read more about romance scams. 

The Withdrawal Trap

Initially, early withdrawals are allowed through the platform, building trust that this is a safe investment and that there shouldn’t be any issues withdrawing later down the line.

Unfortunately, after investing large amounts, victims are often met with a block on withdrawals or requests for fees to release the funds.

Fraudsters request fees for a multitude of reasons, including but not limited to; tax fees, anti-money laundering checks, blockchain fees, and platform fees.

It is important to never pay withdrawal fees; no legitimate firm would ask for these. Once the fees are paid, the scammers will not release the funds and will either cut contact or ask for more fees.

Have you been asked to pay withdrawal fees? Speak to us today for a free consultation.

Warning Signs of a Forex Scam

Here are some warning signs of forex scams you can spot before getting caught in one:

• Guaranteed or unrealistic returns
• Unsolicited contact by phone, email, WhatsApp, or social media
• No Financial Conduct Authority (FCA) authorisation, you can check this on the FCA register
• Claims to be licensed by an overseas regulator
• Pressure to invest more and more
• Requests to pay in crypto or to a personal account
• Being asked to install remote desktop software such as AnyDesk or Screenleap
• Allowed to withdraw small amounts at first
• Blocked withdrawals later, or requests for fees

If you want to check whether a broker you are dealing with is legitimate and regulated, then you can search the Financial Conduct Authority register. Anyone providing financial advice in the UK would need to be regulated by the Financial Conduct Authority. 

It is important to note that scammers can clone legitimate FCA-regulated brands and individuals; you can look for the genuine details on the FCA register under ‘authorised firm details’.

What to Do If You’ve Lost Money to a Forex Scam 

If you’ve lost money to a forex scam, then there are steps you can take to secure your details and look to recover your money. 

1. Stop all contact with the scammers and do not send any further payments
2. Report it to your bank immediately 
3. Gather and preserve evidence: screenshots of the platform, payment evidence, chats with the scammers, wallet addresses 
4. Report it to Report Fraud (Previously Action Fraud)
5. Secure your accounts/passwords and delete any remote access software
6. Be wary of recovery scams
7. Look at recovery options yourself for free, or through an FCA-regulated fraud recovery specialist such as Refundee

Can You Get Your Money Back From a Forex Scam?

Recovering your money after a forex scam depends mainly on how you paid, and the circumstances of what happened. 

Different types of protections include:

Mandatory Reimbursement Model 

• If you sent the funds from a UK bank account, you may be protected. Mandatory Reimbursement Rules for Authorised Push Payment (APP) fraud in the UK have significantly improved victims’ chances of recovering lost funds.
  

Key parts of the Mandatory Reimbursement rules:

• You made the payment after the 7th of October 2024
• Your payment was sent to another UK bank account
• Maximum refund of £85,000 per claim
• Banks can deduct an excess of £100 (doesn’t apply to vulnerable customers)
• Victims must report the scam within 13 months of the last payment
• Banks cannot delay the claim indefinitely 
  

Contingent Reimbursement Model (CRM Code)

If you sent your funds before October 2024 then you may still have protections depending on what bank you used to send the payment. 

If your bank is signed up to the Contingent Reimbursement Model (CRM) Code and you meet the criteria below, you might be able to claim your money back:

• You made the payment from your UK bank account after the 28th of May 2019
• Your payment was sent to another UK bank account

Check our list of participating banks to see if yours is signed up to the CRM code.

Card payments

If you paid by credit card you may be able to claim a refund under Section 75 of the Consumer Credit Act for purchases over £100. Contact your credit card provider directly.

If you paid by debit card you can request a chargeback through your bank, though this is not guaranteed and time limits apply. Contact your bank as soon as possible.

Payments through cryptocurrency or overseas transfers

If you paid through cryptocurrency or to an overseas bank account, you may still have protections. You can look to claim this back through your bank, and if successful, you can escalate this to the Financial Ombudsman Service free of charge.  

If the bank refuses your complaint, do not take this as a final answer. You can still challenge this. Many of our cases are rejected by the bank initially and overturned by the ombudsman. 

Can Refundee Help Me Recover My Money?

You can also use an FCA-regulated claims management company like Refundee to help you recover your money. 

We are specialists in fraud recovery, and we have recovered over £140 million for our clients to date.

We work on a no win, no fee basis so you only pay a fee if you are successful.

Read about the fees we charge.

Start your free eligibility assessment here

Conclusion

Forex and investment scams are on the rise; knowing how to spot them and stay safe is as important as ever. Staying up to date and recognising the red flags before they happen is the best way to protect yourself.  

If you have already lost money, then do not panic; you have options to recover from this.

Start your free eligibility assessment here

More About Refundee

Here are the technical bits:

Refundee Ltd is a claims management company authorised and regulated by the Financial Conduct Authority in respect of regulated claims management activity FRN: 937096.

Registered with the Information Commissioner’s Office; registration number: A8986071.

Registered office address: Refundee, 3rd Floor, 86-90 Paul Street, London, EC2A 4NE.

Registered as a company in England & Wales; number: 12855931.