Fraudulent activity is on the rise in the forex exchange and crypto industries as scammers look to takes advantage of the industries’ growing popularity.
The Austrian Financial Markets Authority (FMA) has issued a warning to the public against an illegal financial company which had been operating in the country. The warning was published on the FMA’s website and it stated that a company known as Universe Markets has been conducting business in Austria without the necessary and proper authority. Universe Markets is also known as WhiteSquare Trading Ltd. The statement by the FMA states that the company is not permitted to execute banking transactions in Austria that require a license.
Universe Markets, through its website, claims to be a leading CFD trading platform. It also says that the company provides excellent trading services to traders in terms of security, tools, user friendliness, features and education. Universe Markets also claims to have collaborations with professional forex brokers, experts in derivatives, risk management professionals and payment processors. This is consistent with how other scams and fraud schemes have been presented in the industries and the Austrian FMA has taken the necessary steps by warning the public about Universe Markets.
Forex Exchange and Crypto Scams Are On The Increase
Scams related to the FX industry and the crypto sector are on the rise worldwide. As these industries grow in popularity, more people around the world are finding interest in them and there is a substantial amount of money going around in them. This growth has also attracted fraudsters who see an opportunity to rip off people.
The Financial Conduct Authority (FCA) reported that people in Britain have lost approximately £27 million to FX and crypto related scams in the 2018/2019 fiscal year. 1,834 scams were reported to the FCA last year which reflected a four fold increase in comparison with the year prior to that.
It is quite evident that scams have increased and as cryptocurrency becomes more widespread and common, it can only be expected that these scams will appear more often. FX and crypto traders should exercise due diligence before engaging in any business with an exchange. It is important to verify the authenticity of an exchange with the relevant authorities so as to avoid falling victim to these scams.