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Neighbors Growing Together | Nov 22, 2017

Sheriff warns of scam

Mar 21, 2014

The Jefferson County Sheriff’s Office was contacted by a concerned citizen in reference to a scam that involves trading the Iraqi currency, dinar.

Below is a warning from the U.S. Commodity Futures Trading Commission (CFTC) in reference to the Iraqi dinar.

The Foreign Currency Trading (Forex) market is volatile and carries substantial risks.

It is not the place to put any money that persons cannot afford to lose, such as retirement funds, as most or all it can be lost very quickly.

The CFTC has witnessed a sharp rise in Forex trading scams in recent years and wants to advise the public on how to identify potential fraud.

Signs of a possible fraudulent sales pitch:

• Leads a person to believe one can profit from current news already known to the public, such as, “Given the things happening in Iraq, you can easily profit from the exchange between the U.S. dollar and the dinar.”

• Made through word of mouth referrals or emails from friends and relatives, members of community organizations, churches or social groups.

• Contacts a person and asks for personal information such as name, phone number and email and home addresses.

• Promises that with Forex, there is no “bear” market.

Possible persuasion tactics:

• Dangling the prospect of wealth and enticing a person with something wanted, but can’t have, such as, “This Euro/dollar deal is guaranteed to rise double what your current investments are doing.”

Before participating in Forex trading, ask questions.

• Contact the CFTC to check the company’s registration status, business background and disciplinary history.

• Ask about the firm and the individual’s performance record on behalf of other clients.

• Ask for all information in writing. Do not rely on oral promises or statements.

• Ask for a written risk disclosure statement.

• Ask for the advice of an independent and licensed, trusted financial advisor or consultant.

Questions to ask any financial professional:

• How are you qualified to provide me this service?

• How does this product meet my financial needs?

• How are you paid for your service?

If a person decides to participate in Forex trading:

• Do not deposit more funds than can be afforded to lose.

• Do not mortgage a home or cash in savings.

• Do not trade on margin unless one understands it. Margin trading can make one responsible for losses that greatly exceed the dollar amount deposited.

Contact the CFTC quickly if aware of suspicious activities, believe there has been fraud or have questions. Call the CFTC at 866-366-2382 or file a tip or complaint.


Comments (1)
Posted by: Thomas G James | Mar 23, 2014 20:49

The Iraqi Dinar has been for sale for 8 or 10 years across the world by reputable licensed dealers.  Since the Iraqi Dinar is not currently traded, all of the above information about FOREX is misleading and deceiving.  It is not a publcly-traded currency yet, until several criteria are met.  Again, individuals can buy Dinar on the internet, and it is NOT FOREX, as it is not on any foreign exchange rate sheet at this time.  The speculation is that upon Revaluation, the value could go up.  Buyers of dinar currency  are betting that upon Revaluation- whenever that may occur - the value would go up, but there are not futures or options contracts available, because this is not a tradeable currency.

This report is vague and should have more information; who is allegedly promoting it?  The CFTC has nothing to do with it now.

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