The Federal Financial Supervisory Authority (BaFin) warns of fake “recovery agencies”, contacting victims of forex and binary options scams, with offers to recover traders losses in exchange of an upfront payment or a fee.

Most scam victims are clients of illegally operating trading platforms, offering a wide variety of assets form crypto CFDs to binary options.

According BaFin in certain cases scammers who robed their customers, where the same who pretended to represent “the recovery agency”, that was supposed to help victims get their money back.

In other cases, BaFin notes, fraudsters exchange lists of previous victims, so that they can call them, promising to recover their money. In all cases an upfront payment or a fee is required.

“Although some government agencies could help people, who have lost money, they don’t charge a fee, guarantee money back, or give any special preference to anyone who files a complaint”, BaFin Notes.

In addition BaFin warns of RichmondFG, a broker that appears to be offering forex and CFDs trade in Germany without being properly regulated.

According to the German regulator, RichmondFG is not an authorized investment company or credit institution in Germany and is not allowed to provide banking or financial services in and from the country.

BaFin says potential investors should be especially suspicious of any promises of disproportionate returns, that exceed what you can usually get on the market.

BaFin also advises traders to always verify the broker’s identity.