Authority warns against forex scammers

FOREX trading and lockdown do not make good bedfellows, at least not at the moment.

This was the warning from the Financial Sector Conduct Authority (FSCA), which warned against doing any finance-related business with forex trading platforms that promise an income stream during the Covid-19 lockdown.

In a statement, the FSCA said it had been brought to its attention that some forex trading platforms were telling the public risks were low and people with limited trading experience could earn a steady income.

“Even though these trading platforms offer demo accounts, these accounts have been set up to simulate normal trading conditions that would lead to favourable outcomes, and do not simulate the high volatility the financial markets are currently experiencing,” read the statement.

The FSCA advised the public to check that an entity or individual was registered with the FSCA to provide financial advisory and intermediary services and what category of advice it is that the entity is registered to provide.

Chad Thomas from independent financial crime investigation company IRS Forensic Investigations said scammers were out in full force.

“We have seen a surge in schemes where victims are promised quick returns, especially through the supposed trade in cryptocurrencies on the forex trading platforms. The scammers advertise via social media and set up WhatsApp groups,” said Thomas.