Investors Tricked Into Recruiting Others to Keep Fake Trading Platforms Alive, FSMA Warns

A rising number of fraudulent trading platforms are trapping investors in pyramid-like schemes that promise quick and high returns but ultimately lead to heavy losses and disappearing funds.

The Financial Services and Markets Authority (FSMA) has highlighted how these scams lure victims using deceptive tactics before collapsing when the recruitment of new investors fails.

How the Pyramid Scheme Works in Fake Trading Platforms

Many of these platforms operate on a pyramid structure, relying on new investors’ deposits to pay returns to earlier participants. This gives the illusion of profitability, encouraging further investments and recruitment.

However, when it becomes impossible to attract fresh investors, the scheme collapses, causing significant financial damage to victims. Fraudsters contact targets via fake ads featuring celebrity endorsements, fake recruitment websites, false social media or dating app profiles, or messages claiming accidental receipt.

Some scams involve acquaintances inviting others to high-return investment opportunities. All share the tactic of promising huge profits in an unrealistically short period.

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Victims typically begin by depositing small sums, often around 250 euros. Fraudsters may offer remote access to devices under the guise of assisting with transactions, which can install harmful software. These manipulations help scammers control accounts and increase the victim’s losses.

“The investors are encouraged to recruit new participants. Their investment allows them to pay returns to the first investors. When it becomes impossible to recruit new participants, the pyramid collapses,” the FSMA mentioned. “In all cases, the fraudulent platform disappears completely, taking all the investors’ money with it.”

Initial Investment and Remote Access Tricks

After money is deposited, trading interfaces are manipulated to display fake gains, fostering trust. Subsequently, victims face persistent pressure through calls, urgent offers, or threats, urging them to add more funds, escalating their exposure.

Initially, small withdrawals might be allowed to build confidence, but when victims seek larger withdrawals, platforms use excuses such as taxes or fees to block funds. Ultimately, the platform vanishes, taking all invested money.

The FSMA has published a list of fraudulent sites and clones to help investors avoid these scams. Some examples include Flash Deal Academy, NeuroTradeX, and clones reportedly masquerading as reputable financial providers.