Fraudulent Commodities Exchanges

Unfortunately, the commodities market is full of fraudulent activities. These operations occur on a daily basis and are not uncommon. The first sign of fraud is a website that is not legitimate or has an unlicensed broker. Another red flag is an inauthentic website or service. It is important to recognize the signs of a fraud. While online investing can be lucrative, it is vital to protect yourself against scams. Here are a few tips to keep in mind.

In addition to the CFTC, the Department of Justice has also taken action against these companies. It is working with the Commodity Futures Trading Commission to crack down on such crimes. As a result, the government is expected to pursue these criminal cases more aggressively. Until now, the US government has been slow to act on cases of commodity fraud, but it is now doing so. This is a good thing.

There have been several instances of commodities scams. The first example was the emergence of bucket shops. These buckets allowed people to make trades on commodity prices, but they didn’t execute these bets on an exchange. Instead, they offset the amount of the bets with their own money. Consequently, when successful wagerers wanted to collect their winnings, they discovered that they had lost all their money.