Get Your Money Back From the Broker via Chargeback: How to Avoid Falling for Scammers

In this article we want to draw your attention to a widely discussed topic: recovering funds from a broker through the "chargeback" process — and the scams that have grown up around it. We will walk you through the general deception scheme used by most fraudulent chargeback companies.

These companies typically publish information on their websites claiming they can recover money for investors who have been defrauded by dishonest Forex or binary options brokers.

The Chargeback Process

A legitimate chargeback can recover up to 100% of funds that investors lost by entrusting their money to dishonest Forex or binary options brokers. Assistance is available to people in multiple supported regions worldwide. However, fraudulent sites typically provide no concrete information about how the money is actually recovered. You will usually find only vague assurances that the company will prepare an application to your bank or payment system and handle all the necessary documentation on your behalf.

How Chargeback Scams Work

The scheme used by chargeback scammers follows a predictable pattern. Company representatives seek out and contact people who have lost money dealing with dishonest brokers, then offer to recover all of their funds. To proceed, however, the investor is told they must open an account with the company and make a deposit.

Once that requirement is met, the second stage begins. Staff at the fraudulent chargeback company send their "clients" a series of letters repeatedly assuring them that the funds will be recovered from the dishonest broker shortly. Before the money can be released, however, the investor is told they must pay an insurance fee — typically 10–30% of the amount originally lost.

If the "client" agrees, a follow-up email arrives a few days later stating that the bank has already received the transfer of the lost funds, accompanied by a supposed payment confirmation. At this point, the victim relaxes, believing the money is on its way.

But the scam does not stop there. A subsequent letter, purportedly sent by a financial regulatory authority, informs the victim that the transfer to their bank account has been "frozen" pending a compliance review. To release the funds, they are told they must pay a fine or a "regulatory fee." In reality, no legitimate financial regulator contacts individuals this way or demands upfront payments to release funds. The concept of financial regulation does exist, but it refers to something entirely different: a framework of government oversight measures designed to protect consumers, maintain market integrity, and safeguard the financial system.

After the fine is paid, the victim receives yet another letter — this time claiming, in the name of the same fictitious "service," that the manager they have been dealing with is himself a fraudster and not actually affiliated with the organisation. The implication is that the fine was never properly received, setting the stage for further demands.

Victims who continue to comply will keep receiving these letters indefinitely. The sole objective of the fraudulent chargeback scheme is to extract as much money as possible from people who are already at a loss.

Typical Payment Amounts in Chargeback Scams

The "mandatory" fees demanded in a fraudulent chargeback scheme vary considerably and are generally calibrated to the amount the victim originally lost. In one documented case, a client first deposited $3,200, then paid two further fees of $2,000 and $500 respectively — bringing their total losses to $5,700.

Conclusion

When attempting to recover money from a fraudulent broker, a trader risks losing an even larger sum in the process. The chargeback procedure is complex and is primarily designed for interbank transactions; recovering funds from a broker this way is rarely successful. The best approach is to choose your broker carefully from the outset — read all available reviews before making any deposit. We recommend reading our article on how to choose a binary options broker, or selecting a trusted, verified broker from our rating of the best binary options brokers.