More and more influencers (ie people from reality TV or social networks) are promoting certain products / services, including online trading. As a law firm specializing in dispute resolution on Forex-type platforms, we take a dim view of the rise of easy money. In this article, we will reveal the relationship between the influencers and the IronFX broker, the details of this dishonest scheme, as well as the opinion of one of our clients.
I / The rise of scams with influencers offering online trading
Social networks have gained enormous scale in modern society. In fact, even before we buy a product, we check its legitimacy on social media. Increasingly, Internet users are influenced by individuals with a large number of followers. These people are called “influencers”, they are often YouTubers, “tickers”, “Instagramers”, but also people from reality television.
These individuals are usually approached by companies to promote their products or services in return for remuneration. However, these influencers are often heavily criticized for promoting sites for dropshipping, scams with influencers from reality TV, etc. Today, we want to deal in this article with the promotion of influential people in online trading.
In recent months, we can see on social networks, including Snapchat and Instagram, influencers from reality TV, who encourage their subscribers to participate in online speculation. We find a story for beginners, whose script is worthy of a science fiction film.
II / How do they proceed? Is this really a scam with influencers?
As we have said, these influencers on reality television aim to promote online trading platforms in exchange for monetary remuneration. That’s why these people are ready for anything, even if it means promising exceptional profits in just a few days. Their interests? We believe that they are paid a fixed commission for performing this advertisement, as well as a variable commission based on the number of downloads on the company’s platform.
In short, the more an influencer downloads the app by referring to their subscribers, the more they get paid.
The equation is simple and trading platforms understand it. In addition, even if the influencer has a few worries, he will do everything in his power to make money from the backs of his loyal followers. They will be able to lie about the numbers, promising you to win astronomical sums in a few days.
Take the example of Laurent “Billionaire” Korea, known for his sports betting site, but also for being the husband of Jazz Korea, a reality TV star. He also promotes trading groups on online platforms. To do like him, just register on the IronFX platform using a referral link and download the MetaTrader app, which will allow you to trade the foreign exchange market, Forex, etc., starting from 200 euros.
From now on, you need to join a group in the Telegram application called “VIP Trading”, where you will find “Trading Signals”, i.e. ready-to-use instructions for buying euros, selling US dollars or reselling New Zealand dollars at will. Apparently Laurent Billionaire’s friend, Amir Louezzane, promises you, “Even without any knowledge, you just have to copy the investments sent to you so you can trade like a pro without knowing anything about trading.”
When this kind of talk is used, as a law firm specializing in the field of online trading, we recommend you to be very cautious. Indeed, it is obviously impossible to make money without doing anything and especially without knowledge. No such thing exists. Obviously you may be lucky for the first few times, but you can lose all your money very quickly. This phenomenon is similar to a casino.
Can we say that the influencer Laurent “billionaire” offers is a scam? There is not enough evidence to identify it as fraud, but many people have been misled by this so-called ‘social trade’ system.
In addition, for comparison, last July star Nabila Benatia was fined 20,000 euros for “fraudulent marketing practices.” Indeed, the reality TV star and businesswoman promoted a site offering marketing training without claiming to be advertising.
For this purpose, we advise you to read the article in the newspaper Le Parisien, in which master Konstantin Mikov gives his opinion on the topic.
You’re probably wondering, “Would this be a scam or a fraud coming from the IronFX broker, since all decisions are made by the Telegram group, among others?” According to us, since it is forbidden to make advertisement on online trading platforms, without advertisement few people will have bad luck to come across this broker. Note that as an example, Laurent Billionaire never mentions IronFX.
III / IronFX, the broker at the heart of this whole scheme ?
IronFX is a well-known broker in the field of online platform trading. In fact, the broker has offices in Cyprus, London, Johannesburg and Sydney. It is authorized by CySEC in France thanks to its European passport. He has committed crimes in the past and has been investigated by authorities. In December 2017 and November 2015, CySEC issued a decision on the alleged violation of its provisions by IronFX. Therefore, after an investigation, IronFX paid 335,000 euros.
IV / “They told me: sir, I plucked you”, the opinion of one of our clients on this story
Among the fifty or so clients we have against the IronFX broker, we would like to tell you about Bernard *, who lost an astronomical sum because of the Cypriot broker and its affiliates. Fortunately, thanks to this client, we have proof of this fraud.
“I had sold a house, I had 300,000 euros of equity, I had reached 400,000 euros with the trade they were doing. This is where I asked for a first transfer of 50,000 euros, to finance a retirement home better than an Ehpad, “recalls the 86-year-old man.
“And there they told me: sir, I plucked you,” he testified with a copy of the email in support.
We believe that all these alleged scams happen so easily thanks to the different addresses of the IronFX broker. In fact, as we said above, IronFX has offices in Cyprus, London, Sydney, but also in Bermuda to circumvent European regulations. Indeed, we can assure you that this service was performed in an unregulated environment. This scam is even easier because he controls the trading of victims, including Bernard’s. The investment does not exist, the losses go directly to the broker.
In conclusion about the possibilities of fraud with influencers, the network Financial Fraud Lawyers advises you to pay attention to the proposals of people with influence on social networks. Also, before investing money in trading platforms, check their legitimacy with AMF (Autorité des Marchés Financiers) for example or with your relatives.
If you believe that you have been deceived or scammed in trading platforms, you can reach us through our contact form.
* names have been changed