Beware of Forex Scams in Dubai

Global investors should be aware that they could be the targets of a scam offering to double their money through foreign currency exchange (forex) trading. In reality, these exchange funds are really just a Ponzi scheme.

The National reported dozens of these get-rich-quick scams can easily be found, and while they look genuine, they work by using the cash from new investors to pay returns to existing investors. Expert financial advisors warn that the schemes could collapse at any moment.

One company is promising a return of 110% on investments of as little as $20,000, reported The National. The low investment makes getting involved very attractive for amateurs when normally the minimum deposit is $100,000 or more and returns would be just 7% a year.

An investor who had pulled his money from the fund, explained that the offer will likely draw in airline cabin crew members and teachers.

This is not the first time forex schemes have been an issue in Dubai. In the summer of 2013, MMA Forex, another scam, lost investors millions when it collapsed.