The CFTC advised the public to avoid unregistered brokers and advisers promoting their services on social media platforms.
According to the customer advisory, fraudsters create multiple online profiles and post fake testimonials in an attempt to lure consumers into their schemes. Fraudsters typically target people interested in trading foreign currencies, binary options, digital currencies or precious metals, and will sell trade signals, automated trading software, trading platforms, or training in unique trading strategies that are guaranteed to be risk-free. In other cases, fraudsters target recent victims of fraud, promising to help them get their money back, or pose as law enforcement, attorneys or government officials.
The CFTC provided some safety tips, advising the public to:
- not rely on tips or claims that are provided online;
- be skeptical of the information source;
- work exclusively with advisers and platforms that are registered in the United States;
- fully understand the product or services;
- remember that there is no such thing as a risk-free investment;
- not rush into an investment, since fraudsters often fake urgency;
- not pay more money in an effort to retrieve stolen losses; and
- remember that government agencies will never demand money by phone or email.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
