July 4, 2019 | AtoZ Markets - The Financial Markets Authority (FMA) of New Zealand has recently released a new warning against Bitcoin Trader crypto firm. At the same time, the U.S. Commodity Futures Trading Commission (CFTC) warns retail customers about the dangers of financial scams on social media.
About Bitcoin Trader crypto firm in a brief
According to the company’s description, the firm provides crypto trading software which reportedly applies an algorithm that wins trades with 99.4% accuracy.
The company claims that software was founded by two college students, Jeff and Mike, “that wanted to make some extra cash online, instead of getting some poor paying table serving the job.” The company promises very fast and high profits up to $1,300 daily.
However, the concerns arise when checking the company's members’ reviews on the firm’s website. First of all, every person's picture on the company’s website was taken from the stock image. Moreover, it was not possible to obtain these people working for the companies they mentioned.
The Bitcoin Trader crypto firm on the New Zealand regulator’s radar
Last week, the Financial Markets Authority (FMA) of New Zealand issued a public warning against Bitcoin Trader, flagging it as a scam.
The regulator explained, it has received a complaint from a New Zealand resident about a misleading advertisement on Facebook.
According to the regulator, the advertisement included a link to an article aimed at the New Zealand public with misleading statements about how to make money quickly and easily using Bitcoin Trader.
AMF outlined, that the article and the Bitcoin Trader site are not registered and not represented in New Zealand and are not subject to regulation by any foreign regulator.
CFTC issues social media customer protection advisory
Scammers use different tools and apply various techniques to lure victims into their schemes. Nowadays, fraudsters acting as so-called "influencers" or "educators" started applying social media as a new way to gain profits.
The US Commodity Futures Trading Commission (CFTC) released a document this Wednesday warning retail customers about the dangers of financial scams on social media.
FXLifeStyle is considered as one of the most popular ‘educators’ that claims to assist their‘ pupils’ make very fast and high profits.
As CFTC outlined, it is usually easy to spot a scammer's profile who uses social media to lure investors.
The regulator explained, such scammers "typically flaunt wealth or brag about their huge ‘win’ percentages, use photos of exotic vacations, sports cars, and mansions.
Details or verifiable facts about the scammer’s background, credentials, and experience usually remain unrevealed.
The social media scammers usually offer products such as binary options, bogus trading signals, and phony educational courses.
The CFTC explained that scammers encourage their victims to invest gradually with time increasing the pressure. If the investor appears to make money, the scammer makes him invest more. In the case of loses, the victim may be offered additional classes, upgrades, or ‘loss insurance.'”
In conclusion, the US regulator warned against the follow-up scam. Such fraudsters go after their prior victims, claiming that they are suing the company that scammed them and ask the investor to pay for the legal services.
Think we missed something? Let us know in the comments section below.