Two US men, Patrick Gallagher, 44, of Middleborough, Massachusetts, and Michael Dion, 49, of Orlando, Florida, both pled guilty to one charge of conspiracy to commit financial crimes in a foreign exchange operation that spanned a decade.
Forex: Is it a con?
The world’s currencies are traded on the Forex market, a credible platform. It would be tricky to trade the currencies required to pay for imports, sell exports, travel, or conduct cross-border business without the Forex market. However, because there is no centralized or regulated exchange and massive leverage positions (which theoretically have the potential to earn traders a lot of money), are available, con artists use the scenario and rookie traders’ desire to join the market.
Since the forex market is a ‘zero-sum’ market, in order for one trader to profit, another dealer must lose money. As a result, the forex market does not by itself increase market value.
About the Scam
According to the Department of Justice, hackers established a fake organization called Global Forex Management and lured investors by assuring them large profits based on falsified trading performances from the past.
This article has been indexed from CySecurity News – Latest Information Security and Hacking Incidents
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