The regulators in the financial industry have been making an effort to curb the rise of irregularities in operations. Unfortunately, it hasn’t stopped the illegal establishments which come out intending to deceive newbie traders. The scam attempts in the cryptocurrencies and foreign exchange have been very high. One of such dubious companies that have materialized now is Dartalon Ltd. Traders wouldn’t know that their operations are illegal except that ASIC flagged them this Tuesday as suspicious.
The Australian Securities and Investments Commission Flag Dartalon LTD
The company Dartalon LTD has been operating as GFC Investments. ASIC believes that this company is not legal and may be engaging in trade scams. So, the regulator is warning consumers to avoid this entity entirely. Traders should not do business with them. Dartalone LTD has no authorization and hasn’t gotten the license to prove their authenticity. As such, they can’t be a financial service provider in Australia.
The watchdog stated that GFC investments has made lots of unsolicited calls and sent out emails to potential customers. According to ASIC, the message they are relaying is that the company provides financial services. They claim to deal on areas such as investments, financial advice, loans, and credit facilities. However, they don’t have a current AFS or ASIC license. These two licenses; the Australian Financial Service Licence and the Australian Credit Licence is compulsory before operating in the sector.
According to the Aussie watchdog, traders in Australia should not use https://gfcinvestment.com as it belongs to GFC Investments. Also, the residents should not invest or use any service on the website. It’s all unregulated and existing without authorization.
ASIC warns that GFC Investments advertising that it has been a provider of the trading instrument since 2012 is a scam. We’ve discovered that traders can trade cryptocurrencies, Forex and CFDs through their online platform. We also learned that the company is operating from “Suite 305 Griffith Corporate Centre, 1510, Beachmount Kingstown, St. Vincent.”
The Rise In Crypto Scams Are Becoming Alarming
Initially, it was easier to spot a financial scam when you see one. Unfortunately, scammers have upgraded their skills. They can now create a website that looks very legit without spending much. Also, they now have many channels to reach unsuspecting investors. Anyone using social media, for instance, is a target of these miscreants.
As a result of these multiple communications channels and strategies, the Crypto and FX industries is still a target. We got a report this morning that UK traders lost £27 million ($34.4 million) to these scammers in 2018/2019. Also, the British regulator even mentioned this Tuesday that last year, the authorities received up to 1,834 reports of scams.
Apart from the British regulators, the AMF (Autorité des marchés financiers) has made another discovery. According to them, the scammers have switched to other assets since the regulators have exposed their attempts with cryptocurrencies.