In this interview we will show you the trading platforms from different aspect. There are many frauds on the internet, including trading frauds. In this interview, Konstantin Mikov talks about frauds, health crisis, influencers and FXPace.
Watch the full video here: https://www.bsmart.fr/video/2442,37-smart-lex-mikov-attorneys
Is easy money synonymous with fraud?
4.5 billion euros in 6 years, i.e. an average of 750 million euros per year from trading fraud in France. However, Konstantin Mikov explains that not all victims file complaints, which can increase this number.
The fraud is not just in France, but throughout Europe. These numbers are therefore tenfold. We believe that these numbers amount to more than ten billion euros in Europe. These frauds affect all countries in Europe, not just France. Usually, the scammers get away with it because they speak the same language as the victims. We believe that this is an organisation that uses the financial flows and markets in Europe.
Has the health crisis had an impact on frauds?
Due to the health crisis and the lockdowns, European citizens fell into a vicious circle of trading scams. Fortunately, there has been substantial recognition by the authorities “thanks” to the health crisis.
It should be noted that the scams are becoming more and more diversified and sophisticated. Financial flows are simplified between countries, and since we don’t see anyone, it is easier for scammers to con victims. It is very easy to be able to transfer money from victims to scammers through regulated institutions in Europe like Cyprus with CySEC, for example. Indeed, trading platforms are now the new playgrounds for scammers.
According to various sources, about 30% of crypto-currency transactions are scams or money laundering. It should be noted that there is no precise data available as this is an industry that is less monitored by official institutions.
What is the interest of influencers in relation to trading platforms?
The various advertisements of influencers on social networks are paid by the scammers themselves in order to share coupon codes and/or good deals with their communities. These influencers aim to convince their communities to invest in trading platforms. We believe that influencers are paid on the loss of victims. This is a trend that affects not only France but the whole of Europe.
Germany is extremely affected by this scourge, and recently they managed to arrest suspects of a scam in Israel linked to the FXPace trading platform.
You can find our article on the following link “Investigation: Alleged Forex scammers arrested in Israel”.
Do frauds go through Cyprus?
Frauds are generally based in Cyprus but especially these ones related to Forex and trading platforms. Indeed, some institutions are not as rigorous about certain matters as in other countries. There is therefore a proliferation of shell companies in Cyprus knowing that they can apply their services throughout Europe thanks to the economic passport. It is therefore difficult for a small country such as Cyprus to carry out the necessary investigations and sanctions against malicious companies.
How to protect yourself against these frauds?
We see every day on the internet ways to earn money easily. You just have to believe it or not. Note that if you are promised to earn money without doing anything and in record time, it usually involves risks and it can also be a fraud.
At the European level, we have ESMA (European Securities and Markets Authority) which oversees the supervision and the European authorities. ESMA tries to control and provide rules but it is difficult to control the efficiency of some regulators. Indeed, when it comes to the AMF (Autorité des Marchés Financiers in France), it is almost impossible for frauds to go undisclosed. However, in other smaller countries, regulators are more flexible, and ESMA control is more difficult.
In conclusion, we advise you to always check up on the company and the user reviews. Note that it is difficult to recover money when they are lost.