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 inbound inquiries through their website, financialcommission.org.
The Financial Commission (FinaCom), a key external dispute resolution (EDR) body for the financial services sector, alerted the public to a scam involving fake FinaCom representatives.
These impostors falsely claimed to be affiliated with FinaCom, aiming to exploit individuals who have suffered at the hands of illegitimate brokers. This alert follows a previous notice dated December 15, 2023, highlighting concerns over similar fraudulent activities.
Scam targets traders facing issues with their brokers
The scam targets traders who have encountered issues such as lost funds or blocked withdrawals with brokers including Umarkets, TPG Deals, Universe Financial Brokers, Kiexo, Izzi, Your Global Deal, among others.
The fraudsters offered recovery and chargeback services for a fee, pretending to be employees of FinaCom. They also issued bogus letters of guarantee using the names of non-existent legal firms like Orbital Limited, Arbitrum Law Firm, AK Law, Guardians Recovery, and more.
Additionally, these scammers manipulated contact details resembling those of well-known digital asset wallet providers like Blockchain.com and Coinwallet to further deceive their victims.
FinaCom does not offer funds recovery or chargeback services
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 inbound inquiries through their website, financialcommission.org. The Commission also clarified that it never uses social networks or messengers for official communications, issues letters of guarantee, charges fees for its services to traders, or serves customers of non-member brokers.
Traders are urged to verify communication authenticity by checking for secure links to the Commission’s website and the official email address, [email protected]. The Financial Commission remains committed to identifying fraudulent activities and enhancing secure communications with traders, urging them to report any suspicious representations.
The Financial Commission stands as an independent EDR forum, aiming to resolve disputes between consumers/traders and their financial service providers who are members of the Commission. It initially focused on disputes in electronic market trading, such as Forex, before expanding to CFDs, related derivatives, and certifying trading technology platforms.
