Forex trading involves betting on the rise or fall of the Indian currency relative to other foreign currencies.
If the price moves in their favor, traders earn money; otherwise, they lose.
This activity is similar to gambling, and above all forex trading platforms are banned in India.
Despite this, people are often attracted to such platforms due to their easy accessibility and promises of high returns in a short time, which are generally unrealistic.
The worst-case scenario is that if a person loses money, there is no regulation in India that allows them to recover their losses.
Recently, Shantanu (name changed) shared a case where a forex trading platform, MDSF Global (name changed), targeted people in rural areas, convincing them to invest in forex exchange by claiming a guaranteed return of 9%.
Shantanu: Hi Sir. I just want to discuss a very serious matter. One of my family members has invested in a foreign forex market that’s regulated in Dubai.
ADB: Oh no, that doesn’t sound good. Tell me more about it.
Shantanu: I told him not to do it because the forex market is banned in India. If his money gets lost, SEBI and FEMA won’t help recover it since the main branch of this forex company is in Dubai.
ADB: That’s a major risk. What convinced him to go ahead with it?
Shantanu: They’re claiming that investors can earn a 9% interest monthly.
They’re also using a pyramid scheme chain. It’s very tempting, but now I’ve heard that the money payout option has been stopped for the time being. I doubt it will ever reopen.
ADB: That sounds like a classic scam. What’s the name of this company?
Shantanu: The company is called MDSF Global. The worst part is that this scam is spreading in rural areas. People are madly investing their hard-earned money into this forex trade.
ADB: That’s terrible. Have any of them actually seen any returns?
Shantanu: Some have claimed they received a car from the company, but I think it’s just to lure more people in.
ADB: This is a serious issue, Shantanu. It’s important to spread awareness and caution others about these fraudulent schemes.
Shantanu: Absolutely, Sir. I just hope more people become aware and stay cautious.
Now trading scams like this is this due to a lack of awareness, education, or simply greed for quick money?
Whatever the reason, such situations make individuals more vulnerable to scams.
It is, therefore, important to stay aware of regulations, check the background of the company, ask questions before investing, and seek advice from professionals.
