UK regulator exposes Recovery Global scam

abdelaziz Fathi

Britain’s financial regulator today published warnings against unauthorized activities of multiple boiler rooms, recovery scams and cloned firms that are unlawfully targeting investors, as per an official statement.

Following the liquidation of many failed brokers, investors are now being warned that scammers are making false claims that their funds can be recovered. This is an increasingly popular technique which is absolutely rampant and involves taking the victim of a scam and then scamming them all over again.

The FCA’s warning specifically refers to a company called Recovery Global, which operates through https://recovery-global.com. The shady website claims it employs a team of recovery experts that have decades of experience in the field of scam debt recovery, with a specific focus on binary options, forex, cryptocurrencies and stock trading.

The City watchdog said investors should not be lulled into false communications ‎trying to usurp its identity to defraud them in a recovery scam, in which individuals are asked to pay a fee upfront before they receive any proceeds.

This type of activity is typical of the fraud mechanism known as a ‘recovery room.’ Although the regulators could help people who have lost money, they don’t charge a fee, guarantee money back, or give special preference to anyone who files a formal complaint.

While there are many variations of these tactics, the refunding scams are simply defrauding the victims one more time.

Earlier this month, the UK regulator warned all authorized CFDs providers to ensure their investors have all information necessary to properly assess the regulatory coverage attached to their products.

The FCA warned that consumers may be at serious risk of harm from poor practices in the contract for difference sector. Announcing the findings of a review into the market for selling the instruments, the regulator said the review uncovered areas of serious concern that it wants to highlight across the industry.

Specifically, the FCA has seen examples of fake celebrity endorsements, the use of pressure-sales tactics to persuade people to invest increasing amounts of money and inducements being given to customers to upgrade to elective professional status despite clients not meeting the criteria and losing protection under the rules. The FCA has also seen some firms giving investment advice without authorisation.

Read this next

Metaverse Gaming NFT

Despite crypto winter, Fastex grabs $23.2 million in Fasttoken token sale

Fasttoken, part of the Fastex web3 ecosystem, has secured $23.2 million in financing through the private and public token sales of its native cryptocurrency Fasttoken (FTN).

Digital Assets

Iran to repay Russian debts in gold-backed stablecoins

A high-ranking member of the Russian parliament confirmed reports that his country was in talks with Iran to create a stablecoin for foreign trade settlements, to replace the dollar, ruble and Iranian rial.

Digital Assets

SEC denies Cathie Wood’s bitcoin ETF for second time

The approval of a regulated crypto derivative is still looking far less likely, as the US regulators have once again denied Cathie Wood’s application for a long-awaited spot bitcoin exchange-traded fund (ETF).

Executive Moves

Pavel Spirin promoted to Scope Markets CEO following Rostro acquisition

Belize-based FX and CFDs brokerage Scope Markets has promoted Pavel Spirin to take on an expanded role as the company’s chief executive officer. He replaces the outgoing CEO Jacob Plattner, who has also been a major shareholder since he resigned his position as managing director at GKFX.

Retail FX

Public.com goes all-in on alternative investing, launches Rare Sneaker Portfolio

“The concept of curated Portfolios means that our members will be able to invest in categories like art, trading cards, royalties, and real estate without needing to become subject matter experts on individual assets.”

Industry News

State Street taps AWS and Microsoft for cloud and infrastructure solutions

“By standardizing and simplifying our technology operating model, we will be able to more quickly deploy client environments and launch new products and services, while continuing to enhance the resiliency of our technology environment and our business operations.”

Institutional FX

Bitpanda launches Investment-as-a-Service business for banks, fintechs, online platforms

“Financial institutions today have to ask themselves how they aim to cater the increasing demand for modern investing solutions. Building these Individually, means a high startup cost, and products that are often outdated before they are even launched.”

Institutional FX

Options expands market data feeds after partnership with Tools for Brokers

“Our integration with ACTIV Financial marked the beginning of a new era in market data availability and infrastructure. Our teams have come together to provide unparalleled, fully managed market data services alongside Options’ global connectivity and infrastructure.”

Industry News

Recruitment in financial services sector buoyant despite planned mass layoffs

“It remains to be seen what impact this will have on hiring levels within the financial services arena this quarter”, said APSCo, regarding the expected mass layoffs within the financial services sector in England & Wales. 

<