FSCA Issued Advisory for Traders During Festive Season

December and January are peak months for brokers to attract customers with exclusive, special offers. It is also the season for Ponzi schemes, in which brokers become active, make false promises to traders, and defraud them.

As a result, the Financial Sector Conduct Authority (FSCA) advises the public to be wary of scams and Fraudulent activities during the festive season. The authority provides a few tips to keep the public and their money safe. Here are all the Suggestions. Read them all and be alert.

1. If in doubt, leave it out. If you do not have sufficient information about an investment opportunity, do your homework, and confirm that the identity is authorized by the FSCA to provide financial services and to make investments. Make sure that you fully understand the investment and the entities that you are conducting financial services business with. Keep in mind that fraudsters want to Keep the information as vague as possible so that the public will not spot the deception

2. Do not allow yourself to be pressured into making an investment or a payment urgently. Pressurized marketing is a strong indication of criminal activity. Let the deal cool down.

3. Social Media isn't always a reliable source of information: The lifestyles portrayed on social media claiming to be a result of specific investments may not be what it seem. This is a popular method for criminals to lure the public into a trap.

4. Claims that celebrities have invested in the product. Criminals frequently post photos of celebrities claiming that they are endorsing the investment. In many instances this is a misrepresentation, i.e. the celebrities' photos and details are used fraudulently and without consent. Even if a celebrity endorses a product, keep in mind that celebrities and influencers are not necessarily experts in investment advice. Celebrities and influencers are unlikely to post their poor decisions and mistakes.

5. Do not participate in Ponzi schemes. Ponzi schemes are easily identifiable by their unrealistic returns and lack of information about the product and the investment entities. A Ponzi scheme by its very nature will collapse, causing financial harm. Keep in mind that it is illegal to participate in a Ponzi scheme.

6. Do not perpetuate a pyramid scheme. If you are required to raise money by recruiting other people into the “investment”, it is most likely an illegal pyramid scheme. At some point, the pyramid scheme will fall apart and either you or the persons you referred will suffer losses. As with Ponzi schemes, it is illegal to participate in a pyramid scheme and you run the risk of being criminally charged.

7. Stay away from websites with no depth. Although criminals get better at defrauding the public, it is worth the effort to test the depth of a website. Click on all the links to see if it leads somewhere. Often criminals do not bother to create a

second level of fake information to fraudulent websites. Authorized financial institutions are required to always display their license numbers. If it is absent, treat the invitation with suspicion. If an FSP number is displayed, confirm with the FSCA that such an entity or person is correctly licensed.

8. Confirm the destination of your funds. Often fraudsters claim to be associated with a legitimate investment institution. Confirm with such an institution that the offeror of the product is an authorised representative of the institution.

9. Make sure that your advisor speaks to you about the suitability of the product Every financial advisor must conduct a suitability test when advising you on a potential investment. This means that you must be informed of the risk of the product, and whether you can afford the risk. If this does not happen, do not invest in the product, it is likely to be a fraud or very high-risk investment.

10. Most importantly, stay away from “investments” that promise unrealistic returns. Keep the well-known adage in mind: if it is too good to be true, it is because it is not true.

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