Expensive cars, hi life, tons of cash and even a private jet! These were the luring elements for RCFX Forex trading scam victims in Malaysia. Now they can't get their money and don't know what to do.
11 September, Forex Scams - In 2013 a group of youngsters started to lure young Malaysians by showing of their luxury cars and their Forex trading earnings on Instagram under the tag #rcfx. They were a part of MLM system called RCFX. You could start off with RM10,000 or RM30,000 and the company would promise you manual or EA trading options.
It just does not stop there. Regardless of the amount you "invested", there would always be a lock down percentage of 30%. Which means by putting RM10,000, you only actually get RM7,000 credit to start your trading with. Company would claim that they were spending investors remaining 30% for "FOREX EDUCATION and SEMINARS". (Similar to South Africa Forex Scams too)
RCFX MLM system
Although many people kept on calling RCFX Forex investment platform. In reality, RCFX was just another MLM platform. Once you join with your 30% money, they would give you an option to bring more members to get their 30% for yourself as a referral bonus. RCFX used to also offer 1 MYR per lot to traders as well, assuming that they were IBs. Hence, they not only were an MLM system, but also had a conflict of interest with their traders with their trading "robots".
So, in short RCFX was an MLM platform with a conflict of interest. Now, those of stranded RCFX Forex trading scam victims are searching for a solution.
RCFX Forex trading scam victims
The Malaysian Insight; Malaysia based news agency, today reported that investors who lost as much as RM703,000 are now looking for a solution on how to get their funds back.
The group of investors in Malaysia appears to have trusted almost $170K of their funds to RCFX Forex trading scam experts. They were given options of 4% monthly returns for manual trading and 10% return for automated trading. Of course on paper, their returns appeared, however they never saw the actual return on their investment, except one time off $2000 withdrawal to one of the investors. It is just like what we discussed in the 2 steps to spot a Forex Fund manager scam article. Names might be different, however methods are just the same.
RCFX client luring with super cars
As an example, the following is one of the typical young investor attraction methods. Just bring a super car and press on the gas to make them envy you.
Bank Negara Malaysia (BNM) has also marked RCFX as a potential fraud as well. But, of course when young investors see a fancy car and hi life of promoters, they always ignore those official warnings.