Warning About Fraudulent Offers of Automated Trading in Forex or Cryptoassets

This is the third time the AMF has issued a warning about this fraudulent automated trading scheme involving Forex or cryptoassets. The French Financial Markets Authority is warning about new “clone” websites that continue to pop up, with the aim of scamming new victims by luring them with the promise of impressive returns.
 

A Sophisticated Scam
On the internet or on social media, the scam takes the form of a traditional advertisement, impersonating well-known figures from various fields. Business leaders, famous journalists, comedians, singers, athletes, or influencers—all easily recognizable to potential victims—praise the merits of online trading platforms.
 

Fake news articles, designed to look like they come from major, reputable national newspapers, make it seem as though these celebrities have given interviews. In these articles, the celebrities are said to have inadvertently revealed the secret to their wealth—that online trading has allowed them to earn impressive sums of money. But the reality is quite different.
 

A Double Scam
In total, the amount lost to scams involving this “offer” amounts to several hundred thousand euros. The scam unfolds in several stages. First, the victim enters their contact information on an online contact form. Shortly thereafter, they are contacted by a fake financial advisor. The advisor explains the steps to follow to invest in the currency, cryptocurrency, and Forex markets—two extremely volatile markets reserved for savvy investors.
 

To claim a fictitious prize, the victimized investor must then pay a so-called capital gains tax. To collect this amount, the fraudulent company obtains personal data that can “then be circulated and lead to a second scam,” according to the AMF. The first scam can then be compounded by a second one, when a fake representative of a public authority claims to have recovered the funds that were initially lost. To recover these amounts, the fraudster demands payment of additional fees.
 

Increased Vigilance
While the AMF’s blacklist continues to grow, the constant emergence of new websites requires investors to exercise the utmost caution. The financial markets regulator reminds investors that “only companies authorized as investment service providers in the European Union are permitted to offer brokerage services such as trading—whether automated or not—forex, and cryptoasset derivatives.”
Furthermore, to target French customers, platforms for buying, selling, and exchanging cryptoassets must hold the status of digital asset service providers (PSAN), granted by the AMF.
 

The authority advises consumers to avoid promises of quick profits, to steer clear of Forex and unregulated markets that pose a significant risk of losing their invested capital, and to verify that the brokerage firm is authorized to offer these services and is not on the AMF’s blacklists. When in doubt, it is best to refrain from participating.