FCA finally flexing and fining Finfluencers for promoting scams

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The FCA has finally done something about trading scams being promoted on Instagram. Emmanuel Nwanze who controlled the @holly_fxtrends Instagram account along with Holly Thompson are being charged with running an unauthorised investment scheme and issuing unauthorised financial promotions.

A raft of Love Island stars are also being charged as the FCA also alleges that Nwanze paid Biggs Chris, Jamie Clayton, Lauren Goodger, Rebecca Gormley, Yazmin Oukhellou, Scott Timlin and Eva Zapico to promote the @holly_fxtrends Instagram account to a combined 4.5 millions of their Instagram followers.

Bravo to them – I dip in and out of Instagram every now and again and as I’ve said many times it’s a cesspit of scammers. We even submitted a freedom of information request to the police that showed that around £75million was lost in a single year to social media scams.

There are still a few Love Island contestants that run blatant forex trading signals scams, that hopefully the FCA will be after next.

FCA joined Instagram to warn on Forex and Crypto online trading scams

“A fool and his money are soon parted” is probably a bit harsh really when it comes to online trading Forex and Crypto scams.

In 2019 the FCA tried to reach a more relevant audience by advertising directly on Instagram itself so they do not get scammed in FX or crypto.

However, they simply didn;t have the reach to make a significant impact.

I’d say more like the greedy and the naive. But even sometimes the innocent.

Good old Tony Hetherington in the Mail on Sunday is still fighting the good fight and highlighting online trading scammers as and when they are reported.

Every single day, there are more and more scams being promoted on social media sites like Instagram and Facebook.

Whilst, Google, Facebook, and Instagram banned forex and crypto advertising for anyone that isn’t a regulated broker a new breed of scam advertising has emerged.

Fake educators, who fall outside the regulator’s oversight and are often promoted by influencers rather than advertising networks are lulling people in with clearly staged luxury lifestyles.

These scammers make their money by referring inexperienced traders to offshore brokers who are often not regulated by the FCA.

Any decent broker would not accept a partnership with an introducer who refers clients in such a way. Mainly because good brokers look for long term client relationships. The days of churn and burn clients are over.

We’ve previously highlighted how Instagram is full of Forex scammers, and how you’d have to be a complete idiot to think you can trade Forex for a living.

But now the FCA is trying to reach a more relevant audience by advertising directly on Instagram itself.

It is remarkable actually that people are still being scammed online, as even the most basic of internet searches should show negative reviews on forums or at least a lack of positive reviews.

The FCA’s put together what looks like a typical online trading scam, a chap on a plane, with some flashy stuff. Then peels away the veneers to show it’s all a big fat scam.

There is a section of the FCA’s website that explains how online trading scams work and highlights what you should look out for…

But basically:

  • Be suspicious of high returns (if it’s too good to be true it probably is)
  • Never respond to cold calling (just hang  up)
  • Always conduct your own research (do a Google search for reviews)
  • Check the FCA register (search for individuals and companies)
  • check the firm is not pretending to be a legit firm (they could be cloning a firm to look legit)
  • Check the FCA warning list (interactive form)
  • Check Companies House (to see if the firm actually exists)
  • Talk to an independent financial advisor before investing (or just talk to a friend and get a second opinion)

What to do if you have been scammed:

You can report the firm or scam to the FCA by contacting their Consumer Helpline on 0800 111 6768 or using the reporting form.

Find out more on the FCA website here

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