New Delhi, India — With forex scams rapidly rising in India, Adv. Siby Varghese, a renowned cybercrime lawyer in India and founder of Shield Law Firm, is taking decisive steps to raise awareness and provide legal solutions to victims. From illegal forex trading to unregulated brokers and fraudulent investment platforms, his firm has been at the forefront of protecting individuals from online financial crime.
Understanding Forex Trading and Its Legal Risks in India
Forex trading, or foreign exchange trading, refers to the exchange of currencies with the aim of earning a profit. While the concept is globally popular, it is heavily regulated in India. According to Adv. Siby Varghese, forex trading is legal in India only under specific conditions. Transactions must take place through SEBI-registered brokers and only INR-based currency pairs such as USD/INR, EUR/INR, GBP/INR, and JPY/INR can be traded. Furthermore, these trades must occur on authorized Indian exchanges like NSE, BSE, MCX, and NCDEX.
What makes many forex trading platforms illegal is their use of foreign currency pairs and unregistered brokers operating outside Indian jurisdiction. Illegal forex trading in India includes the use of foreign apps, binary options, or Telegram-based investment groups. These practices violate the Foreign Exchange Management Act (FEMA) and expose traders to serious financial and legal risks.
The Reality of Forex Scams in India
In recent years, India has witnessed a surge in forex scams, affecting thousands of investors across the country. These scams often start with promises of “guaranteed profits,” “AI-powered trading,” or “risk-free returns.” Fraudsters create fake apps and websites that resemble legitimate trading platforms. Through aggressive social media campaigns and influencer endorsements, they lure unsuspecting investors to deposit money, which is never actually invested. Victims frequently discover the fraud only after losing access to their funds or receiving fake account balances.
Adv. Siby Varghese explains that these scams are thriving due to lack of awareness, delayed reporting, and weak enforcement against foreign-based culprits. In many cases, fraudsters use encrypted messaging platforms like WhatsApp and Telegram to avoid detection. Once the scam is executed, the perpetrators disappear, leaving victims with little recourse unless they act swiftly and seek legal assistance.
Legal Framework and Penalties for Illegal Forex Trading
Shield Law Firm highlights that anyone participating in unauthorized forex activities in India may face strict penalties. Under FEMA, illegal forex transactions can attract fines up to three times the amount involved. If the value of the transaction cannot be determined, a fixed penalty of ₹200,000 is imposed, with an additional ₹5,000 charged for each day the violation continues. The law also allows for asset seizure, including bank accounts, vehicles, and properties, if required for recovery.
When such activity is tied to money laundering or financial crimes, the Prevention of Money Laundering Act (PMLA) can be invoked, which may lead to imprisonment of up to seven years. The Information Technology Act, 2000, also provides relief under Sections 66D (online impersonation and fraud) and 43/66 (data misuse and hacking). Furthermore, the Consumer Protection Act, 2019, enables individuals misled by false advertisements or financial products to seek redress in consumer courts. Importantly, directors of companies that promote or enable illegal forex trading can be held personally liable.
Common Tactics Used in Forex Scams
Forex fraud in India is often executed through elaborate schemes that exploit digital marketing and psychological manipulation. Scammers build websites that closely mimic real trading platforms and trick users into depositing funds. These fake platforms show artificial profits to encourage more investment before locking the user out. Telegram and WhatsApp groups are frequently used to distribute fake signals, promote fraudulent brokers, and pressure users into continuous deposits.
Fraudsters often pose as SEBI-approved brokers, even using fake documentation to build credibility. They also pay influencers and YouTubers to advertise these platforms, creating a false image of legitimacy. Adv. Siby Varghese warns that any investment scheme that promises quick, guaranteed profits with no risk should be treated as a red flag.
What to Do After Cyber Crime or Forex Scam
For those searching what to do after cyber crime against me, Adv. Siby Varghese outlines a clear legal process:
- Preserve all evidence: Save screenshots, transaction receipts, emails, and chat logs.
- File a complaint on the national cyber crime portal (www.cybercrime.gov.in).
- Report the scam to RBI and SEBI through their official portals.
- Send a legal notice to the fraudster via a qualified cybercrime lawyer in India.
- File an FIR at your local police station or through the cybercrime cell.
- File a case under the Consumer Protection Act if you were misled by false advertising or services.
Timely action is crucial to improve the chances of recovering lost funds and securing justice.
About Adv. Siby Varghese and Shield Law Firm
Adv. Siby Varghese is one of the most sought-after forex fraud lawyers in India, known for his expertise in handling cybercrime, crypto fraud, identity theft, and online financial scams. Through Shield Law Firm, he provides comprehensive legal assistance to victims and ensures their cases are pursued across civil, criminal, and regulatory platforms.
He is also the co-founder of Vakeel At Home, a mobile app that connects users with verified legal professionals across India. With a track record of helping numerous clients recover from financial fraud, Adv. Siby Varghese continues to be a strong advocate for digital consumer protection and financial justice.
Contact Shield Law Firm
If you are a victim of cybercrime, online fraud, or forex scams, reach out to Shield Law Firm for expert legal advice.
- Call/WhatsApp: +91 88849 99803
- Website: www.sibyvarghese.com
- Services: Cyber Law | Forex Fraud | Crypto Scams | Legal Notices | FIR Filing | SEBI Complaints
“Every digital transaction leaves a trail. If you’ve been scammed, don’t suffer in silence—take action, and let us help you fight back,” says Adv. Siby Varghese.