Britons Warned to Watch out for Instagram FX Scams

While these bogus profiles advertise get-rich-quick schemes, they do not even have a website and operate solely on social media.

The Financial Conduct Authority (FCA) is warning Britons of a new generation of unregulated FX brokers and unchecked traders that are using flashy social media profiles to trick them into thinking they can trade online and make thousands in no time.

The most recent additions to the FCA’s warning list are two associated handles on Instagram, @chloehenx, and @chloefxtrades. The watchdog, however, didn’t take further action.

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As of the time of publication, @chloefxtrades profile has taken down all posts though it’s not clear if the page was taken down as a result of the warning or leading up to it. Cashed versions show these pro-claimed traders post pictures of jet-setting lifestyle, including sports cars that they gained from trading in currencies and claim customers can do the same if they ‘follow their signals’.

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, the Financial Conduct Authority warns.

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Between October and February, the City authorities spotted over 350 social media scammers, with the average person losing over $10,000, according to a notice on London police’s Action Fraud team website.

Screenshots of the alleged trading account used by the chloehenx bio appear to show fabricated profits generated from Coronavirus bargains.

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Earlier in March, the FCA warned that fraudsters are taking advantage of the coronavirus scare, and some of their scams are a direct threat to local investors. The Financial Conduct Authority also said that there are hackers in the background, trying to take advantage of trending topics in the news.

On its part, the City watchdog has identified different scams infiltrating Britons’ email inboxes, including insurance policies, pensions transfers, and high-return investment opportunities, as well as for cryptocurrencies.

Officials urge potential victims to check whether these providers are selling a financial product without the required authorization from the regulator.

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