Thousands of French people were scammed on the marketplaces
The Financial Markets Authority monitors certain websites that offer to make a lot of money in a very short time. Scams that have already cost those who took the risk 175 million euros.
"How to get rich quick?" On the forum, a single mother is guessing. “You just have to become a trader, you can even invest from home,” another netizen replies. Last week I won 2500 euros!” This is the first stage of a well-established scam.
The technique is always the same: an Internet user, seduced by the promise of substantial profits in a short period, goes to a website offering various investments. The French phone number is listed for "more information". Someone who presents himself as a "consultant" and speaks perfect French offers his interlocutor an online training course to learn how to manage the strings of the stock market or "safe" investments. The trap is in place, the scammer just needs to wait for his victim to wager all or part of their savings in order to return the bet. “Most trades (stock exchanges) are practiced over the phone at the direction of a coach who encourages you to make new payments in order to “heal” you and quickly make up for losses. Bonus, premium account, perks: all means are good to convince you to keep going,” explains the Financial Markets Authority on its website. When an individual notices a scam, it's too late: the number provided to them no longer answers, and the site can disappear overnight. Before being reborn under a new name and seducing new prey.
9 out of 10 investors lose money
At first glance, marginal, in recent years the number of such fraudulent activities has increased. Between 2009 and 2012, they caused more than 13,000 casualties in France, with a total loss of 175 million euros. Or almost 11,000 euros each. That's why the Financial Markets Authority (AMF) has taken on this issue and is launching a major prevention campaign on Monday against these - unauthorized - trading sites that offer investments that are supposedly very profitable, but above all, very risky. “Risk at the end of the click,” AMF scores.
Prevention is still the best way to deal with fraud, which is extremely difficult to expose and punish. Despite appearances, the people behind the scam sites are located abroad, most often in countries that do not cooperate with the French authorities. “Best advice? Avoid Forex,” AMF warns on its website. “Forex trading is a very risky activity: even on the most serious authorized sites, individuals incur significant losses,” explains AMF. Nine out of ten clients have lost money investing in this market. through trusted sites. This leaves no chance for those who use the "services" of prohibited sites.
Forex and binary options trading, how does it work?
Markets where scammers operate are especially dangerous for beginners. Indeed, Forex, or the foreign exchange market, is the market where world currencies are exchanged. Currencies are floating, that is, their price fluctuates every day under the influence of ongoing financial transactions.
Most of the scam sites offer binary options trading on this market: one has to "bet" on the evolution of the currency up or down. It is almost impossible for the uninitiated to foresee this evolution.
Furthermore, Forex has a high leverage effect, which can be as high as 1000. This means that a new trader is actually betting a much larger amount than he thinks. For example, under the effect of leverage, 400 people who invest 100 euros actually put 40,000 euros into the game! This theoretically multiplies the winnings by the same amount. but also and above all losses.
You can check out the full list of brokers to bypass.