The French investors were stripped of EUR 4 billion since 2010 by websites fraudulent trading, said the Paris prosecutor’s office. Advertisements for very risky financial products will soon be banned by law Sapin II
(Boursier.com.) – The online trading scams have proliferated in recent years. According to data collected by the Parquet de Paris, the French investors were stripped of not less than EUR 4 billion since 2010 by Websites fraudulent trading!
On Thursday, the Paris prosecutor Francois Molins, participated in a joint press conference of the AMF (Financial Markets Authority), the bank policeman, ACPR, and management of fraud, the DGCCRF to alert a new once investors against these often mounted frauds who manage to deceive many traders apprentices …
many opaque companies registered in Cyprus
on the currency trading market ( Forex) or other complex products (binary options, CFD …), there are three categories of actors. On the one hand, there are often recognized names subsidiaries of large banking groups, regulated and authorized in France.
But also, there are many online brokers that have a license, but whose operation is extremely opaque. Most of these sites are registered in Cyprus, some countries watching on business practices, and are remote-controlled by companies based elsewhere, often in Israel. However, since a European directive implementation in 2007, simply to obtain approval of a single European authority to be able to operate throughout the EU …
Finally, there are many illegal sites that operate without holding any license. The AMF lists them on a blacklist any updates regularly. This black list currently has no fewer than 360 names, which illustrates the extent of the problem.
1,656 complaints from individuals to the AMF in 2015 against 64 in 2010!
study the AMF from October 2014 showed that the speculative trading activity was inherently dangerous for individuals, even if investors were directed to sites operating legally. The study, which focused only on providers storefront and authorized, showed that their clients have saved 175 million euros against 13 million loss of earnings over 4 years, and 90% of clients were losers.
Thursday, MFA has warned investors against websites based in Cyprus who are pressuring their customers to always invest more, via misleading advertisements with promises of unrealistic returns. Benoit Juvigny, the Secretary General of the AMF, cited the Cypriot company Pegasus Capital, which proposed a booklet of 12% based on binary options, an impossible return to get without taking very large risks.
the AMF has also received complaints about companies “EZTrader” or “24 option”, which also appear as sponsors of aS Monaco Football club and Olympique Lyonnais! In total, Mr. Juvigny recorded 1,656 complaints from individuals last year against this type of companies offering ultra-risky financial products, against only 64 in 2010.
Advertising of risky products soon prohibited by law Sapin II
As for the Paris prosecutor’s office, it is currently processing 50 cases (involving at least 500 identified victims), two of which resulted in the opening of a judicial inquiry. The prosecutor François Molins denounced websites that are “linked to organized crime, with highly structured teams and powerful laundering mechanisms”.
The AMF and the prosecutor welcomed the next banning advertising for riskier financial products. This measure is indeed included in the bill for transparency and modernization of the economy (Law Fir II). This should help to better protect consumers against financial scams.
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