What the Feds know about Forex Trading Scams
The U.S. Securities and Exchange Commission has begun investigating the Forex trading scam that has been sweeping the globe.
The FBI is also involved in the investigation.
The agency announced in a statement that it is “aware of and is working with authorities in the United Kingdom and the United States” about the case.
It is “extremely concerned by the recent wave of cyber activity targeting Forex traders, which has been spreading across the globe,” the agency said.
Forex traders use technology to trade in foreign currencies that are worth less than the dollar.
They typically buy the foreign currency at the market’s peak, when the price is near its current level.
The exchange rate changes and traders use the currency’s value to make money.
The U.K. is not the only country investigating Forex scams.
A federal grand jury in Virginia, the United Arab Emirates and the European Union have been probing the fraud since mid-March.
The FCA said that it has not uncovered any evidence of any wrongdoing on the part of Forex brokers, but that it’s a “very serious matter.”
The U,UK and EEU also have separate investigations into the fraud.
ForeX is the third-largest asset class in the world after gold and gold futures and currencies.
Forex is widely traded in more than 140 countries.
The FCA is one of the biggest brokers of ForeX and has about 15,000 employees.
It says the investigation into the Forextra Scam is ongoing and that “we take these matters very seriously.”