Malaysia regulator exposes OctaFX clone, shady FB profiles
Malaysia’s financial regulator today warned online investors about the risks of following investment tips made on social-media platforms.
The Securities Commission (SC) has also delivered a stern warning against unchecked traders that are using flashy social media profiles to trick inexperienced persons into thinking they can trade online and make thousands in no time.
Specifically, SC has blacklisted the following websites/social media accounts:
https://robotradepro.com/ | https://pelaburanbijak2022.com/ | https://www.facebook.com/profile.php?id=100085920484835 | https://www.facebook.com/profile.php?id=100085920484835
Notably, the updated list includes names of fraudulent clone platforms that have been posing as well-known, regulated platforms around the world, including a bogus website operating through https://octafx-signal.co/.
These warnings were in response to a rise in unregulated trading signals on online forums, and a concern that retail investors are not aware of the risks associated with following such tips, SC said.
While these bogus profiles advertise get-rich-quick schemes, they do not even have a website and operate solely on social media channels, including Instagram, Facebook, or WhatsApp.
These traders, however, do not have the necessary accreditation or qualifications to offer these services, though they promise very lucrative and guaranteed returns. All fake promises tend to stop after victims have invested money and got their first round of profits.
Tips garnered online by young investors via social media may be inaccurate, the watchdog warns, while advice from financial celebrities can come with a good deal of risk when deciding where to park their money.
SC faces challenges when trying to police crypto platforms
The regulator added that investment recommendations had to be produced in an objective and transparent way, so that investors could distinguish fact from opinions.
The watchdog warned those giving investment advice on social media that they may face fines or other enforcement actions if they broke the rules.
To prevent such practices, SC issued several guidelines that encourage potential investors to be wary of promises of disproportionate returns. A guaranteed investment with a high return that considerably exceeds the market return is often too good to be true, it says.
In an attempt to keep up with the rise of the crypto market, including the number of trading platforms and users, SC has been adamant in its warnings toward investors, elaborating on the potential risks associated with the booming industry.
Anyone who engages in regulated activities without a valid license or registration from the SC is committing an offence under the Capital Markets and Services Act 2007. If convicted, they may be punished with imprisonment of up to ten years and fined.