Many people buy and sell foreign currencies online to snag better rates than what banks offer. The forex market involves massive players like banks, governments, and speculators moving money daily. For individuals, however, the appeal lies in potential savings – but that convenience also opens the door to currency exchange scams.
VELLIS NEWS
10 Jun 2025
By Vellis Team
Vellis Team
Automate your expense tracking with our advanced tools. Categorize your expenditures
Related Articles
Vellis News
27 March 2025
What captivates your client? How can you inspire them to become devoted brand supporters who keep using your service or your products? What can you do ensuring that your customers recommend your brand to others? These are significant questions to ask when you own an eCommerce business.
Vellis News
31 March 2025
E commerce payment methods are essential for facilitating online transactions, ensuring security, and providing a seamless customer experience. With various options available—including credit and debit cards, digital wallets, bank transfers, Buy Now, Pay Later (BNPL) services, and cryptocurrency—businesses must carefully select the most suitable methods based on customer preferences, security, and operational costs.
Vellis News
14 July 2025
Strong Customer Authentication (SCA) is a security measure required under the European Union’s Revised Payment Services Directive (PSD2). It adds an extra layer of protection for online payments by requiring customers to verify their identity using at least two of three elements: something they know, have, or are.
These scams often promise huge returns or unbeatable rates, preying on people’s hopes for quick profits. The Commodity Futures Trading Commission (CFTC) has cracked down on such schemes, helping victims recover millions, but many scams still slip through.
With the growth of global e-commerce and travel, more people are exchanging money online. While digital platforms offer speed and convenience, they also give scammers the tools to deceive.
From fake websites to shady emails, fraudsters exploit the excitement of easy money. Cybercriminals use fake domains and phishing to target unsuspecting users, often going unreported due to victims’ confusion about their legal rights. Cryptocurrency adds another layer of risk. Fraud losses in Australia spiked 190% between 2017 and 2018, and UK complaints tripled by 2019.
As criminals expand their tactics, the variety and frequency of foreign currency exchange scams continue to grow.
Understanding how scammers operate is the first step toward protecting yourself. Here are some common fraud tactics:
Scammers create websites or apps that look like legitimate forex trading platforms. They might even show fake profits to lure users into investing more money. Once enough money is deposited, the site vanishes—or withdrawals are suddenly “locked.”
Fraudsters often guarantee high, fast returns from currency trading, which is a major red flag. Real forex trading carries risk, and no legitimate platform can promise constant profits.
Some fraudsters pose as professional brokers without the proper licenses. They may appear trustworthy at first but often pressure users to invest quickly or make risky trades.
Emails, ads, or social media messages may lead users to spoofed websites that collect personal data and banking credentials. These can lead to identity theft and unauthorized transactions.
These mobile apps may offer seemingly great exchange rates, but once you make a transfer, your funds are gone. Some of these apps have even made it into official app stores before being flagged.
Watch out for these red flags when using online foreign exchange services:
In one notable case, investors were lured into a fake currency trading company with promises of 80% returns in just two weeks. Victims transferred funds to the fraudster’s account, only to be told they needed to pay a “release fee” to access their profits. The scammers disappeared shortly afterward, taking all the money with them.
Such schemes are especially convincing when paired with fake reviews, endorsements, or even forged documentation.
Before sending money or trading online, take these steps to confirm you’re using a trusted provider:
Make sure the platform is authorized by financial regulators in its country of operation. Examples include:
Most licensed platforms display their registration numbers on their website footer—verify those independently.
Only use platforms with secure, encrypted connections:
Check third-party reviews and community forums like Trustpilot, Reddit, or Forex Peace Army. Be wary of platforms with overwhelmingly positive reviews posted in a short period—these could be fake.
Contact support with a basic question before transferring money. Unresponsive or evasive service is a red flag.
Legit platforms are transparent about fees, limits, and exchange rates. If the terms are vague or hidden, stay away.
When it comes to exchanging money online, staying safe starts with using trusted services. Foreign currency exchange scams are on the rise, but with a few precautions, you can avoid falling victim.
Use licensed, well-known platforms that follow regulations from bodies like the CFTC or are listed on NFA BASIC. These platforms are regularly audited, making them far less likely to be involved in a currency exchange scam.
Secure your accounts with strong, unique passwords and enable two-factor authentication (2FA). This adds an extra layer of protection in case someone gets hold of your login details. Never share passwords or sensitive info even if someone claims to be from your bank.
Ignore unexpected emails or texts with links claiming to offer “deals” or urgent updates. These often lead to fake websites or malware. Instead, type the platform’s URL directly into your browser. Regularly updating your device’s security software also helps keep you safe.
Legit services will never ask for your banking password or full login details. If someone does, it’s likely a scam. Always verify who you’re dealing with, especially when it involves money.
Credit cards offer more fraud protection than wire transfers or debit cards. If something goes wrong, you can dispute the charge. Before traveling, let your card provider know, and consider using a card with no foreign transaction fees. This makes international spending safer and smoother.
If you’re looking for the best place to buy foreign currency online, always compare exchange rates and fees from regulated services and avoid deals that seem too good to be true.
If you’ve fallen for a currency exchange scam, don’t panic – instead, act fast.
Call your bank or card provider right away to try reversing the transaction. Then, report the fraud to the FTC or your country’s equivalent to help others avoid similar currency exchange scams.
Notify local law enforcement and cybercrime agencies. These reports not only help track down scammers but also protect future victims.
Reporting the scam to organizations like the FTC or Better Business Bureau can trigger investigations and public alerts. These agencies help take down scam platforms and educate others.
Update your passwords immediately and set up 2FA if you haven’t already. Monitor your accounts closely for unfamiliar charges – scammers sometimes wait before using stolen info.
Posting your experience on trusted forums like Reddit, Trustpilot, or the Better Business Bureau can protect others. Real stories are often more helpful than generic warnings.
Looking for safe options? Here are some essential tips for buying foreign currency: always verify licenses, check reviews, and compare rates from online foreign exchange services that are transparent and regulated.
No, only platforms regulated by financial authorities with verified track records should be trusted.
Look for license details on the website and verify with official government registries.
Fake websites offering excellent rates and asking for upfront transfers, then disappearing.
Yes, scammers often use slightly altered URLs to mimic real providers—always double-check the domain.
Credit cards typically offer more protection and recourse compared to wire transfers.
Possibly, if reported quickly. However, success depends on the payment method and provider’s policies.
Commodity Futures Trading Commission. (n.d.). CFTC and NASAA issue warning on foreign exchange (Forex) currency trading fraud. U.S. Commodity Futures Trading Commission. Retrieved May 21, 2025, from https://www.cftc.gov/LearnAndProtect/AdvisoriesAndArticles/cftcnasaaforexalert.html
Christ, C. (2023, October 27). Common scams associated with money exchange. Bankrate. https://www.bankrate.com/personal-finance/common-scams-associated-with-money-exchange
Valley Bank. (n.d.). Combatting foreign exchange fraud. Valley Bank. Retrieved May 21, 2025, from https://www.valley.com/commercial/insights/foreign-exchange/combatting-foreign-exchange-fraud
Ready to transform your financial management?
Sign up with Vellis today and unlock the full potential of your finances.
Related Articles
Vellis News
31 March 2025
Choosing a reliable payment provider is crucial for businesses in high-risk industries. However, finding the right high-risk payment processing company for your business can be challenging.
Vellis News
5 May 2025
Local payment methods are region-specific or culturally preferred for goods and services. These can range from traditional bank transfers and mobile wallets to cash-based vouchers and locally popular credit or debit cards. They reflect the payment habits and infrastructure of a particular country or region.
Vellis News
14 July 2025
Businesses face growing threats from increasingly sophisticated fraud schemes. Regardless of your industry, protecting your systems and customers from fraud is essential to avoid financial losses and maintain trust. This is where machine learning steps in as a game-changer.
We use cookies to improve your experience and ensure our website functions properly. You can manage your preferences below. For more information, please refer to our Privacy Policy.
PCI DSS-certified and listed on Visa’s Global Registry – verified security you can trust.
© 2025 Vellis Inc.
Vellis Inc. is authorized as a Money Services Business by FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) number M24204235. Vellis Inc. is a company registered in Canada, number 1000610768, headquartered at 30 Eglinton Avenue West, Mississauga, Ontario L5R3E7, Canada.