Monday, May 7, 2007
The Commodity Futures Trading Commission (CFTC) and the North American Securities Administrators Association (NASAA) today issued a joint investor alert to warn of the dangers facing retail investors who are lured into foreign currency (forex) trading frauds. The regulators cautioned investors that off-exchange forex trading by retail investors is at best extremely risky, and at worst, plagued by outright fraud.
“The damage forex fraud has caused the investing public and the victims of forex scams is incalculable. If you have a phone or an internet connection, you are a potential target of fraudulent forex shops,” says Commissioner Michael V. Dunn, Chair of the CFTC’s Forex Outreach and Education Task Force. “While the CFTC, NASAA and other state and federal regulators are working hard to stop and prevent forex scams from occurring, the first line of defense is an educated consumer and caution in the face of unknown investments."