Be Careful for These "Forex traders"!

With the development of social networks and the rapid increase of users, many businesses have begun to use social platforms to develop a "fan economy" to generate revenue. Now many investment projects with fraudulent nature are also packaging through social media, claiming how they can spend a few minutes every day to make thousands of dollars, enticing some investors who to fall into the fraud trap.

We can see on Instagram, Facebook, Twitter and other social platforms, in which those so-called "Forex experts / masters" will post their trading profit records, as well as the luxurious sports cars, tourist attractions and celebrity friends. They claim that customers can "follow trading signals" to make money and enjoy this enviable life just like them. However, many trading signals are not as magical as they said. When you really follow the signals provided, you will often experience significant losses or even a breakout.

What is even more surprising is that one of the hardest hit areas for such a botched scam is the United Kingdom, where the world's strictest regulatory agency, the Financial Market Conduct Authority (FCA) is located! In the UK's major social platforms, such as Facebook, Twitter and Instagram, these "successful traders" promised newbies that they could earn thousands of pounds with only 300 pounds in 5 minutes per day. They post photos of themselves spending time in luxurious hotels, buying / driving expensive cars and wearing designer clothes to attract young people. Even with this stupid method, the number of victims has been increasing. This scam is particularly prevalent on social networks in Asian countries such as China, Malaysia, Thailand, and Vietnam.

Thousands of "brokers" did not have the necessary qualifications or certifications to provide these services, and their actions were illegal. The FCA in the UK has repeatedly warned that many companies promoting fast-to-rich programs do not even have a website or a company registered in the UK, but only operate on Instagram, Facebook or WhatsApp without restrictions.

Luke Forex Trading (right) promotes his "get-rich-quick" program on Instagram

Luke Blackburn, 23, from East Riding, Yorkshire, England, claims to be a forex trader on Instagram and has 13,100 followers. The 23-year-old said he dropped out of school at the age of 18 and invested in foreign exchange with a £ 1,000 loan, which gave him enough money to buy three houses, an expensive car and a superior life. 

He claims that his clients can do this by "copying his exact trades", and they only need to "deposit £ 300 into his trading platform" and spend five minutes a day.

His website “Trade with Infinity” offers online tutorials and educational courses on forex trading. The standard "Signal" monthly fee is £ 39.99, while the "VIP Signal" monthly fee is £ 99.99.

However, Blackburn, or Luke Forex, was not certified by the FCA, so the services he advertised were illegal. According to the FCA's warning list-“We believe that this company has been providing financial services or products in the UK without our authorization.”

Blackburn has taken down his Instagram homepage, and he told the Daily Mail that he doesn't need to be supervised.

Another woman named Sophia FX Trades was also listed by the FCA as an unauthorized trader and a potential fraud trader. She has 17,000 followers on Instagram, and in all of the postings she has pictures of charming outfits surrounded by banknotes.

 Beautiful and charming Sofia and her Sofia Forex

Other photos showed her dining at a restaurant with views of Canary Wharf and the City of London. "Join our team, follow our forex signals and profits, and get rich quickly with us." Such propaganda is seen right after these pictures are posted.

Sofia claims that some of her clients have invested £ 350 during her 30-day free trial period, after which they have earned between £ 200 and £ 2,000 per day. She published an article on Why Forex on Instagram, boasting "Without experience, you can make 50 to 300 pounds a day to become a financial expert."

Sofia Forex calls on everyone to follow her to trade forex and get rich

More surprisingly, she also received celebrity endorsements from several reality show stars! Former "Beach of the Wind" star Stephen Bell called on his fans to "follow my girlfriend @Sofia"; another celebrity Nathan Messi has done similar things. The reason is surely intriguing.

Sofia was recently added to the FCA's warning list, which said it was not allowed to charge for illegal services she provided. A representative from Nathan Messi said he did not know Sofia was an unauthorized trader. It's unclear whether Stephen Bell knew the truth about his “girlfriend”.

The FCA said that these so-called online traders usually promise very generous and guaranteed returns, but that returns often stop after the victim invests and earns the first round of profits. Social media sites are flooded with more and more fake forex traders, and more than 4 million posts on Instagram have been labeled as "forex traders". Between 2018 and 2019, the total losses in the UK for this type of transactions reached 27 million pounds.

As a trader, have you encountered similar situations in social networks or real life?

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