The Financial Commission, an external dispute resolution forum in the financial services industry, has provided an update on its investigation into a recently uncovered scam involving fake representatives posing as The Financial Commission. This deceptive activity aimed to defraud traders and swindle money. The Financial Commission had previously issued a cautionary notice about this group of imposters on 15 December 2023.
Deceptive Tactics: Fraudulent Representatives and Fake Legal Services
Further investigation by The Financial Commission indicates that these individuals, claiming to be staff members of The Financial Commission, are targeting traders who have suffered losses or faced blocked withdrawals from illegitimate brokers, like Umarkets, TPG Deals, Universe Financial Brokers, Kiexo, Izzi, Your Global Deal, among others. These scammers offer funds recovery and chargeback services to affected traders for a fee.
The fraudulent representatives, purporting affiliation with The Financial Commission, have been known to demand fees from victims and, in some instances, have issued letters of guarantee using fake companies that claim to offer legal services, including Orbital Limited, Arbitrum Law Firm, AK Law, Guardians Recovery, and others.
Additionally, these scammers have falsified contact details resembling those of legitimate online digital asset wallet providers such as Blockchain.com and Coinwallet to deceive victims into remitting fees for illegitimate services.
In response, The Financial Commission reiterates several key points for the public and forex brokers' clients to be mindful of. The organization does not offer funds recovery or chargeback services, and it does not initiate communication with traders through cold emailing or calling. Legitimate correspondence from The Financial Commission does not occur via messengers or social networks. The organization does not issue letters of guarantee or similar documents to traders, and its services to traders of broker members are always free of charge.
The Financial Commission serves customers of its member brokers, and traders are advised to consult the list of members on the organization's platform. Traders should use the Dispute Resolution Form on the official platform to submit inquiries, and they are encouraged to scrutinize contact details provided in messages purportedly from The Financial Commission to ensure legitimacy.
Traders who receive unsolicited communication from individuals claiming to represent The Financial Commission should verify the legitimacy of such claims by contacting the organization directly before disclosing any personal information.
Financial Commission warns of fake funds recovery or chargeback offers -
— The Industry Spread (@industryspread) February 16, 2024
To combat this issue, FinaCom stated that it does not offer funds recovery or chargeback services, nor does it engage in unsolicited communication with traders. Official interactions originate only from... pic.twitter.com/IktCkJvWEW
Facilitating Dispute Resolution for Consumers and Traders
The Financial Commission operates as an independent external dispute resolution forum for consumers and traders unable to resolve disputes directly with their financial services providers who are members of the Financial Commission. Initially focused on resolving issues arising from trading electronic markets such as Foreign Exchange, the organization has expanded its scope to include CFDs and related derivatives, as well as certifying technology platforms.
The Financial Commission reaffirms to identify and address fraudulent activities and will continue to take measures to safeguard communication with traders. The organization urges traders to report any suspicious individuals or entities claiming association with The Financial Commission.
