The FSCA has received information that iFX Brokers and its CEO are being impersonated on social media platforms and online. The impersonators have created a website that closely resembles that of iFX Brokers’ and are soliciting investment in amongst others Forex, Contracts for Difference, Stocks and Indices. The impersonators are also using a Telegram group, where the persona of Mrs de Necker is being used and members are encouraged to invest funds, with the promise of unrealistic returns. iFX Brokers have confirmed that it and Mrs de Necker are not affiliated to the administrators of the website and the Telegram group used by the impersonators.
While the FSCA does not comment on the specific business model or services offered on Telegram and the website, it is important to note that the impersonators are not authorised under any financial sector law to provide financial services to the public. The impersonators failed to respond to FSCA queries.
To avoid unnecessary risk, the public should refrain from accepting financial advice, assistance, or investment offers from individuals or entities not authorised by the FSCA. Authorised financial services providers must clearly display their authorisation status in their documentation. If this is not present, it is advised to further investigate before making any payments.
The public is strongly urged to exercise caution when considering investment or trading offers on social media platforms or any unsolicited offers.
It is highly recommended that the public verify:
- that an entity or individual is authorised by the FSCA to provide financial products and services, including for giving recommendations about how to invest.
- what category of advice the person is registered to provide, as there are instances where companies or people are registered to provide basic advice for a low-risk product and then offer advice on far more complex and risky products.
- that the FSP number utilised by the entity or individual offering financial services matches to name of the FSP on the FSCA database.
What is Fraud? “Fraud” is any activity that relies on deception in order to achieve a gain. Fraud becomes a crime when it is a “knowing misrepresentation of the truth or concealment of a material fact to induce another to act to his or her detriment” (Black’s Law Dictionary). In other words, if you lie in order to deprive a person or organization of their money or property, you’re committing fraud.