At a time when the crypto industry is under intense scrutiny with regards to financial crimes, scams in the foreign exchange (forex) and the crypto industry keep being discovered.
The Financial Markets Authority (FMA) of New Zealand has sent out another warning through its website. The arm of the government responsible for financial regulation flagged another website that is suspected to be engaging in fraudulent activity.
The regulator flagged www.fuerfx.com as a possible scale. The company is named FERN GROUP NZ LIMITED according to the website. The website provided can be accessed in English and Chinese. The FMA came out to express their concern that the website is operating a scam. They also added that the website is in no way associated with or authorized Fern Group NZ Limited which is actually a registered company in the country.
According to the website that’s been flagged, Fern purports to be a “global, fair and honest, people oriented broker. It goes on to claim that their headquarters are in New Zealand and that they engage in forex and contracts for difference (CFD) trading. They say that they engage in business with financial institutions, corporations and individuals alike.
Contrary to the statement by the FMA saying that the website has no registration or authority in New Zealand, FERN GROUP NZ LIMITED claims to be based in the country and regulated by the country’s Financial Service Provider (FSP). These claims have been declared as false by the country’s watchdog.
Continued FX and Crypto Scams
Scams and fraudulent activity are on the rise in the FX and crypto industries. There is a constant effort by fraudsters to use these industries as a gateway to gaining access to people’s finances. Financial regulators across the world are discovering possible scams in these industries on a regular basis.
Last week, the FMA issued a warning about another suspicious entity. The firm, called King Capital Management, claims to offer full service financial brokerage and claims to be based in Jakarta, Indonesia. Earlier in the year, the Financial Conduct Authority (FCA) revealed that people in the United Kingdom lost approximately £27 million in FX and crypto related scams in the 2018/2019 financial year.
The rise in the number of these scams is a cause of concern for these industries. At a time when the crypto industry in particular is battling for legitimacy, these scams are damaging to the cause. It is always important that people exercise due diligence before engaging in forex or crypto trading.