A disturbing scam tactic has been growing in the world of online trading: the IP ban post-withdrawal request. This underhanded move involves blocking a trader’s access to a trading platform immediately after they submit a withdrawal request, cutting off communication and preventing any further action. While it may sound extreme, it’s an increasingly common trick used by fraudulent brokers to trap funds and disappear without consequence.

In this article, we’ll break down how this scam works, the red flags to watch for, and how to avoid becoming a victim.

What Is an IP Ban in Trading?

An IP ban refers to blocking access to a website, platform, or server based on a user’s Internet Protocol (IP) address. In a legitimate context, IP bans may be used to prevent hacking or abusive behaviour. However, when used by scam brokers, it becomes a weapon to silence users, lock them out of their accounts, and avoid processing withdrawals.

Once an IP ban is implemented, the user is unable to access the platform, view account balances, submit support tickets, or follow up on any ongoing requests.

How the Scam Works

Initial Deposit and Trading Period

Scam brokers often begin by building trust, allowing the user to deposit funds and possibly even make small profits. The trading environment seems normal, with charts, balances, and trade execution behaving as expected.

Withdrawal Request Submitted

Once the trader attempts to withdraw their profits—or even just their initial deposit—the process suddenly becomes problematic. A support ticket may be opened, or a withdrawal form completed, and the platform promises that the request is “under review.”

Immediate or Delayed IP Ban

Shortly after the request, the trader finds that they can no longer log in. The platform times out, shows a generic error, or displays a message such as “Access Denied.” Attempts to reset the password or reach support fail. In most cases, this is because the platform has banned the user’s IP address.

No Access Through Other Devices

Some scams extend the ban to multiple IP addresses if the same account is accessed elsewhere. Even VPN attempts may be blocked if the scammer has blacklisted large ranges of IPs or disabled account access entirely.

Complete Cut-Off From Funds

With no way to access the account or contact support, the trader is effectively locked out permanently. Their funds remain trapped, and the broker may soon shut down the site or rebrand entirely.

Red Flags That Precede an IP Ban

No Clear Withdrawal Policy

If the broker doesn’t clearly explain how and when withdrawals are processed, this is an early warning sign.

Long Processing Times

Excessive delays in verifying withdrawal requests, without regular updates or clear timelines, often precede an IP ban.

Unresponsive Support

Support teams that suddenly become evasive, vague, or silent following a withdrawal request may be preparing to block access altogether.

Sudden Platform Errors

If the platform starts malfunctioning only after a withdrawal is requested—such as login failures or site loading issues—it could be part of the scam tactic.

How to Protect Yourself

Verify Broker Regulation

Only use brokers regulated by reputable authorities. Regulated brokers are held to strict operational and withdrawal standards and can face penalties for misconduct.

Check Online Reviews and Warnings

Before funding a new broker, look for user reviews and official warnings from financial watchdogs. Frequent reports of account bans after withdrawals are a major red flag.

Use Screen Recordings and Screenshots

Document your trading activity, withdrawal requests, and any suspicious behaviour. These can help support refund claims or regulator investigations.

Avoid Large Deposits Upfront

Test the withdrawal process with small amounts before committing significant funds. If the broker delays or denies small withdrawals, escalate immediately.

Access With VPN If Blocked

If you suspect an IP block, attempt to access your account using a secure VPN. This can help confirm if your IP has been banned or if the issue is broader.

Report Immediately

If you experience an IP ban post-withdrawal request, report it to your country’s financial regulator and cybercrime authority. The earlier it’s reported, the better the chances of tracing the scam.

Conclusion

The IP ban post-withdrawal request is a blatant tactic used by rogue brokers to trap traders’ funds and cut off communication. It highlights the importance of conducting due diligence, verifying broker legitimacy, and documenting every step of your trading journey. Prevention is the best defence against these digital gatekeepers of fraud.

To develop the skills and awareness needed to trade safely, avoid scams, and take control of your financial future, enrol in a trusted Trading Course built by professionals for real-world protection.