The Commission de Surveillance du Secteur Financier (CSSF), the Luxembourg regulator, has issued a warning to traders – Zeus Tech & Trading Group Ltd is an unknown entity. The document they published on Friday last week confirmed that the entity has not been granted any authorization to provide financial services.
The warning outlines that Zeus operates via https://fibonetix.com/ and claims to be based at 59, Boulevard Royal in Luxembourg. The Fibonetix website claims to be an online trader providing trades on CFDs (contracts-for-differences), forex (foreign exchange), commodities, cryptocurrencies, indices, and stocks.
They state that their purpose is to remain among the market leaders and ensure their reputation as an accountable and safe broker continues. The firm provides three phone numbers on its Contact page; one from the United Kingdom, Germany, and finally Luxembourg. It goes further to state that Fibonetix is operated and owned by Greentime Systems Kft based in Hungary.
The CSSF warning on Friday follows on from them flagging up S&P Broker on 21 June this year as another dubious entity. This was yet another firm that had not been granted any authorization to provide financial services.
Online Broker Scam – A Growing Problem
Spotting scams is a task that is undoubtedly keeping financial regulators busy worldwide, simply because there is such a considerable increase of them, particularly in the forex and cryptocurrency arena.
In May this year, FCA (the Financial Conduct Authority) based in the UK, noted that people are increasingly being targeted via online trading platforms pushing investment scams. Such scams will claim to be approved by a regulator and will initially involve traders receiving returns, allowing them to appear legitimate.
Later the investor is encouraged to place larger trades or to sign up a close friend or family member, allowing the scammer to trade with more money or on behalf of more people. Finally, the firm closes the account held on its platform, and the trader has no access to funds, but the firm has your bank details.
Protect Yourself from Scams
With this growing epidemic, it is essential to protect yourself. Commonly scams are found on social media platforms boasting and guaranteeing high returns. Traders are urged to research the firm and check that they are authorized with the advertised regulator.
Each country has warning lists provided by their regulatory body, much like the CSSF. The potential investor can search for the company on the regulators’ website and check to see if any warnings about the entity have been published.
Finally, guidance or independent financial advice is always helpful and can prevent you from being scammed. If you suspect an entity report them immediately. Also, should the broker have your bank details, contact your bank directly and explain that you think that you may have been a victim of a scam, and report the company to your bank.