Home Finance What do you have to do if you’ve been scammed in Forex?

What do you have to do if you’ve been scammed in Forex?

by Andy Kyson

In recent years, technology has advanced significantly. A considerable number of online jobs have appeared, and people have started retraining so that they can earn more money. One such business is certainly Forex trading.

It is about selling one currency for another simultaneously for reasons such as commerce, trading, and tourism. Although it is the largest financial market currently in the world with a daily turnover of 6.6 billion, one question arises.

Like everything on the Internet, Forex scams are widespread, most often in scam broker firms. So, the main question is what to do in case of fraud on the Forex market? In case your money is stolen? The short answer is to look for the relevant chargeback companies that will help you.

However, before knowing what a chargeback procedure looks like, it’s essential to understand the term “chargeback” itself.

Explanation of chargeback

The term “chargeback” refers to the procedure that enables you to achieve a refund of paid money using a credit/debit card if the product or service you bought wasn’t acceptable due to any of the following situations:

  • Poor quality
  • Failure to provide purchased product/service
  • You were the victim of the online fraud by the scammers
  • Your card was used without your knowledge and permission

In other words, a chargeback is considered a payment dispute. When a cardholder questions a particular transaction and asks their card-issuing bank to reserve it, the cardholder’s issuing bank or the merchant can initiate the chargeback process.

To sum it up, a chargeback happens once someone asks their debit/credit card provider to return money from a certain charge.

The process of chargeback – step by step

If you’ve been a fraud victim and want to recover your lost money, you will file for a chargeback. Here is a simplified step-by-step guide that will help you recover your lost funds most efficiently and safely:

  • A cardholder challenges a transaction by contacting the card-issuing bank.
  • The issuer reviews the request. If the bank determines that the claim is invalid, the chargeback will be declined. On the opposite side, the case will proceed through the chargeback lifecycle.
  • A cardholder gets a conditional refund. The merchant’s account is debited the original transaction amount with applicable fees.
  • The bank assigns a numeric reason code for the chargeback.
  • After that, it electronically transmits the chargeback data to your acquirer.
  • Acquirer reviews the refund request. There are two scenarios: The acquirer will either resolve the issue or forward the claim to you.
  • The merchant has two options: To accept or dispute the chargeback.
  • You get to submit your response to the bank, along with supporting evidence.
  • After the acquiring bank has electronically re-presented the chargeback and disputed the information, the issuing bank will review the information.

What can happen after that process?

After the process of a chargeback, there can be three possible scenarios:

  • The merchant wins. However, the issuer files a second chargeback.ž
  • The issuer rules in your favour. That means that your representation case validates the original transaction, and the funds are returned to your bank account.
  • The issuer rules in the cardholder’s favour. It means that the bank refused to reverse the chargeback.

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