Can "illegal" commodity/forex investment company (not registered with Security Commission) could be considered as scam?

I've been working with such company for a few months in 2000 and witnessed so much money wasted by customers through the investment. Not due to fraud transaction but mainly to incompetence level of the traders/agents themselves.

Those kind of business start to vanish in 2001 due to Security Commissions start taking action.

Recently I heard this kind of companies risen up again. So whoever is seeking for job, I advise to stay away from this kind of company.