French financial regulators warn against investment fraud

 

 French financial

regulators warn against investment fraud

France's financial watchdog Autorite des Marches Financiers

AMF issued a public advisory paper against Immediate Connect, a suspicious automated investment platform promoted on social media.

In its official statement

The Authority announced that the promoters of

Immediate Connect use several techniques to attract

investors seeking to invest in their automated trading platform.

A preliminary investigation

by the authority found that Immediate Connect offered investors returns

worth millions of euros without taking any risks.

Using impersonation methods

promoters advertise the "platform" to potential investors

similar to popular TV presenters and fake news articles that

 "glorify the advantages of the service".

After they draw investors' attention

fund managers contact interested customers and urge them to

deposit their money in the cryptocurrency trading platform

or foreign exchange market

Financial gangs use fake

trading reports to convince their victims that

their initial investments have generated positive returns.

When victims try to withdraw their money

they are often required to pay taxes on profits and other withdrawal fees.

This aims to escape the victims with their money

which they have received through their own efforts.

In view of

Immediate Connect's anomalous behaviour

the financial regulator has blacklisted the company increasingly

for fraudulent investment companies.

The Authority explained:

"We wish to remind individual investors that it allows only companies licensed

as EU investment service providers to provide brokerage services such as trading,

whether automated or manual trading

in derivative foreign currencies or cryptocurrency assets .

France's Financial

Supervisory Authority added:

Only our registered digital asset service providers (DASPs)

are allowed to submit offers for the purchase

sale

retention and trading of encrypted assets to

the French public through marketing materials."

Investors are advised to take

care when dealing with investment companies that promise quick

risk-free returns

and check the company's status before depositing their money.

The Authority's advice warns investors against treating cautiously in the forex market due to large price fluctuations that can lead to loss of commercial capital in minutes.

Adding Immediate Connect to the blacklist is not the first time

the AMF has cracked down on illegal investment platform activities.

In the third quarter of 2023 :

The Authority

in cooperation with ACPR, blacklisted 22 fake investment sites.

This raises the number of sites reported

to be Immediate Connect's last blacklisting

This is not the first event in which the Authority cracks down on

the activities of illegal investment platforms.

The use of influencers in promoting

fake investment platforms has been reduced.

In legislative terms, individuals who run illegal investment platforms

face up to three years' imprisonment and fines of more than $1 million.