Introduction
In the world of investment scams, there is one that stands out for its persistence and ability to attract unsuspecting victims: the Iraqi Dinar scam. Despite numerous warnings from experts and law enforcement agencies, there are still individuals who believe they are on the brink of making unimaginable wealth by investing in Iraqi dinars. However, the truth is far from the hype surrounding this scam.
The Persistence of the Scam
As comedian Ron White famously said, “You can’t fix stupid.” This phrase perfectly applies to those who continue to buy into the notion that they will become millionaires, billionaires, or even trillionaires by investing in Iraqi dinars.
Although this scam has been exposed and discussed before, it continues to thrive. Week after week, individuals contact my office inquiring about asset protection planning for the vast riches they expect to receive when the dinar revalues at a rate of 100 times or more.
Unfortunately, these individuals have invested every cent they have in dinars and cannot afford to pay for legal advice at the moment. They assure me that once they receive their fortune, they will compensate me accordingly.
But that day will never come.
The History of FOREX Scams
Scams involving the arbitrage of foreign currencies have been around for as long as there have been currencies. Many pyramid schemes disguise themselves as sophisticated “FOREX trading programs” but are nothing more than schemes where new investors’ money is used to pay off old investors. Charles Ponzi, the pioneer of such schemes, would be proud.
During the 1990s, FOREX scams became prevalent due to the speculation surrounding the newly introduced Euro. The U.S. Commodities Futures Trading Commission had to issue numerous warnings about these scams, which can be found on their website. These warnings are equally applicable to the dinar scam.
The Illusion of Dinar Revaluation
There exists an army of scammers devoted to targeting vulnerable individuals, including the elderly, with promises of high-risk-free returns through FOREX trading. However, the money invested only disappears into offshore banks, leaving victims with nothing.
While some FOREX scams involved fictional statements showing substantial returns, the dinar scam takes a different approach. With the dinar scam, individuals can actually possess physical dinars. Many Americans have stockpiled bales of dinars in their closets and garages, waiting for the day of revaluation.
But that day will never come.
To support this scam, fraudsters have created websites, bulletin boards, newsletters, and social media platforms to propagate the illusion of the dinar’s imminent revaluation. People have claimed that the dinar will revalue “within the week” or “by the end of the month,” repeating these false claims for years.
The Comparison to the “Magic Bean Scheme”
This situation reminds me of the “Magic Bean Scheme” that took place in my native Oklahoma. Scammers convinced people to buy expensive beans that, when left in water for a few weeks, would produce valuable “bean juice” that could be resold for a significant profit. The key was to shake the jars containing the beans every few hours to expedite the process. People would wake up in the middle of the night just to shake their jars.
Ultimately, the scammers disappeared, leaving countless Oklahomans with closets and garages full of worthless beans and jars of bean juice made from ordinary navy beans. I suspect some people still hold onto these beans, hoping for untold riches.
The same is true for dinar holders, who have devoted their storage spaces to bundles of dinars, occupying precious room while waiting for the day of revaluation.
But that day will never come.
The Reality of the Iraqi Dinar
Unfortunately, human nature often prevents people from acknowledging that they have been scammed. Some feel embarrassed and believe it is better to keep their useless possessions hidden away rather than admit their mistake. Others genuinely believe their initial investment was wise, and no amount of evidence or logic can dissuade them.
Even after Charles Ponzi’s death, some of his followers used Ouija boards to contact his spirit, desperately seeking assurance that their worthless investments would eventually become valuable. I have witnessed the victims of pyramid schemes continue to believe they are on the verge of getting rich even as the perpetrators are sent to jail.
It is important to understand that there is absolutely no reason to believe that the Iraqi Dinar will significantly appreciate in the long term, and it is utterly insane to believe that the Iraqi Dinar will significantly appreciate in the short term, within 10 years or even beyond.
Conclusion
The Iraqi Dinar scam preys on the hopes and dreams of individuals seeking quick wealth. However, it is nothing more than a deception that capitalizes on false promises and misinformation. Investing in Iraqi dinars is akin to buying bags of sand or collecting rolls of pennies in the hopes of future value. The truth is, the dinar is unlikely to ever appreciate significantly.
