Canada’s OSC Blacklists Payback Limited

The regulator believes the people behind the forex Trans Atlantic Direct scam are the same who work for Payback Limited.

The Ontario Securities Commission (OSC) published a warning on its website on Thursday against Payback Limited. According to the statement, the company seems to be involved in a scheme that targets former investors of Trans Atlantic Direct (TAD).

Payback Limited is an Israeli company. On its website, it claims to protect customers from online fraud, particularly against unauthorized forex and binary options brokers. If an investor has been wronged, it states that it will fight to get their money back. The company highlights that it will go to the lengths of seeking court action.

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In this instance, Payback Limited has been seeking out Ontario investors who lost money as the result of a forex trading scheme which involved TAD. According to the warning, the company is claiming it can recover the lost funds for investors.

The Canadian securities regulator already issued a Temporary Cease Trade Order against the unauthorized broker. The watchdog also believes that the people behind the TAD scheme are the same people who work for Payback Limited.

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The regulator calls this a ‘double dip’ scheme. This means investors who were targeted once are then often targeted by the same group or individuals a second time.

The OSC urges anyone who is contacted by Payback Limited to let the regulator know. Investors should be very wary when dealing with this company. The watchdog also reminds consumers to check its website to see whether a financial firm is registered before engaging with them.

Another day, another scam

Scams like these in the forex, binary options, and crypto industry are not uncommon. In the past few years, there has been a noticeable uptick in the number of unauthorized brokers, clone firms, and scams trying to illegally offer their services to investors.

Earlier this year, Finance Magnates reported that the Financial Conduct Authority (FCA) warned investors against a rise in online binary options scams. The warning stemmed from data, which illustrated that investors lost an average of $111,217 (£87,410) per day, over the course of 2017.

When wanting to invest with an online broker, investors should first check the warning list of their local financial regulator to see if the broker has been blacklisted. Furthermore, they should confirm the company is authorized to avoid getting mixed up in a scam.

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