The UK Financial Conduct Authority (FCA) and Action Fraud are warning the public to be wary of investment scams carried out via online broker scams. This warning comes as
- Over £27million lost to scams involving crypto and forex
- Victims lost on average over £14,600
- Complaints tripled to over 1,800
Social Media Trap
Fraudsters often use social media to promote their get-rich-quick schemes. Posts often use fake celebrity endorsements and images of luxury items like expensive watches and cars. These then link to professional-looking websites where consumers are persuaded to invest.
These figures are startling and provide a stark warning that people need to be wary of fake investments on online trading platforms. It’s vital that people carry out the necessary checks to ensure that an investment they’re considering is legitimate.
Pauline Smith, Director Action Fraud
FinTelegram reported about a remarkable FCA warning regarding social media scam promotion. On May 2, 2019, the UK Financial Market Authority FCA issued an investor warning against a certain Molly Ramm who had advertised Forex Broker through her Instagram account.
The FCA ScamSmart Campaign
To fight scammers the FCA launched its ScamSmart campaign in 2018. As part of the FCA’s ScamSmart campaign, the FCA will run ads on social media to raise awareness of online trading scams. Consumers should be made more sceptical of get-rich-quick trading scams promoted online.
FCA’s ScamSmart campaign encourages those considering an investment to check its ScamSmart website for tips on how to avoid investment fraud. Additionally, FCA entertains a dedicated ScamSmart Facebook page to educate and inform people directly on the crime scene.
FinTelegram welcomes and supports the FCA ScamSmart campaign. We are convinced that not only the operators of the Scam Broker schemes should be held accountable, but also all supporters, enablers, and facilitators. This includes the payment transaction providers )PSP) as well as people who advertise these schemes in the social media as so-called influencers or marketing agencies acquiring new customers victims.
Report Scam Broker and Influencer
Illegally operating broker schemes and their boiler rooms are part of fast-growing global cybercrime activities. Millions of investors are defrauded by those broker sites losing billions of euros every year. Hence, it is important to warn investors of such illicit sites. If you are a victim of an illegally operating broker site such as Tradeinvest90, Option888,
