After pump-and-dump schemes around the Reddit forum WallStreetBets and GameStop, it was perfectly foreseeable that scammers were pouncing on this social media powered trading approach. Reports that the already more than 7.8 million members have beaten the Wall Street pros and created billions in market valuation virtually out of thin air is tantalizing. Ultimately, the copy trading approaches of broker platforms like eToro work similarly to the WallStreetBets approach. Today, the FCA warned against the Copy Trade Capital and Premium Trade Capital broker scams, which attack consumers mainly in the UK.
The two scams offer various “Trading Plans” or “Investment Plans” that promise up to 30% return per day on the invested capital. This is so ridiculous per se that no investor should actually fall for it. But who knows? Boiler room agents have their ways to convince naive investors.
The Copy Trade Capital and Premium Trade Capital are almost identical and evidently operated by the same scammers. Both scams have been around since at least August 2019.
The scams are likely to have already caught many investors. Deposits are possible via Bitcoin (BTC even without prior KYC. The BTC address 1uqpV8fRnf6ue6Gk3aXfsSHbfgo77MAAmassociated with Copy Trade Capital (given during our review) has already received a total of BTC 1.7 (around S57k). We are sure that there are several of these addresses.
Stay cautious, stay suspicious, stay safe!
