The Australian Securities and Investments Commission (ASIC) on Wenesday alerted the public about a suspicious investment ‘opportunity’ from Cash FX Group with the website: cashfxgroup.com.
According to ASIC, Cash FX Group also known as ‘Cash Forex Group’ or ‘CFX’ is not licensed to provide financial services in Australia. This means that consumers patronizing this suspicious firm will not have the same protections when dealing with an Australian financial services licensee.
It is worthy of note that financial regulators in the United Kingdom, New Zealand, Canada and other countries have issued alerts or warnings about Cash FX Group.
The Cash FX Group website predominantly promotes a ‘Trading Academy’ with various deposit plans. Upon investing in these plans, the website claims that a portion of the money will be allocated into a trading pool, where it will be managed by a team of in-house ’expert traders’ guaranteeing high passive returns.
The Australian watchdog is concerned because Cash FX Group appears to be operating a financial services business in a manner that is likely to attract Australians to use its financial services. However, it is not licensed to provide financial services in Australia.
Cash FX Group claims investors could earn returns of over 20% per month on their investments. Such rates of return should be treated with caution in the current environment.
Cash FX Group accepts cryptocurrencies as payment. Consumers do not have the same protections as they would if they paid by other means, for example if they paid by credit card.
Those who invested through Cash FX Group are advised not to transfer more money to this entity. Contact your financial institution immediately to see if they can assist in tracing payments made.
Investors do not need to lodge a report with ASIC as the regulator has sufficient information at this time. ASIC is also unable to assist in recovering investors’ money.
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