Britain’s are being warmed by the Financial Conduct Authority (FCA) about a new rash of unchecked traders and unregulated FX brokers using social media platforms in an attempt to convince them they can make large profits by trading online.
The Financial Conduct Authority recently added two Instagram handles to its warning list. These include @chloefxtrades and @chloehenx, but the FCA failed to take any additional action. At the time of writing, the @chloefxtrades profile has removed all posts however it is unknown is the handle is no longer active resultant on the FCA posting a warning or not.
The proclaimed traders show off flashy images of living the high life by posting pictures of sports cards, private jets and making outlandish claims that investors can enjoy the same luxuries if following “their signals”.
The trouble is, while they promote get rich schemes, neither of these handles operate a legitimate website and only exist via social media platforms such as WhatsApp, Facebook and Instagram. The problem is, the traders do not have the required qualifications nor the necessary accreditation to be offering this type of service, even though they make claims to offer guaranteed and lucrative returns on investments. The promises made come to a rapid halt after victims invest money and they receive the first round of profit.
FCA tells Warning consumers to be Wary
During the period from October 2019 and February 2020, City authorities found more than 350 scammers using social media to take advantage of un-savvy investors, who based on a London police Action Fraud team website, lost on average over $10,000 each.