Offshore Broker Scams - Beware of OFFCO
If Your Broker is regulated by O.F.F.C.O (OFFCO) - Offshore Financial Futures & Commodities Organisation
THEN READ THIS
Updated in August because there's another fake Regulator - IOFCC (link)
|
UPDATED : October 2005
- What a surprise the OFFCO websites have now been taken down
- There's also no sign of the broker websites including the infamous scam companies like Lynx Commodities, Nexus Futures and Bernstein & Nader
- Be on your guard folks because these scammers aren't out of business, they'll just come up with new names over the next few weeks and months
- Remember our 3 GOLDEN RULES
- Never do business with ANY financial firm that calls you out of the blue, repeat NEVER (however plausible they sound, remember they're professional scammers of the highest quality)
- Always check out the firm in question by calling your country's financial regulator* and checking them out. Whatever you do don't let the scam firm hoodwink you in thinking they are regulated by some fake regulator located in Switzerland etc
- Use Google, Google is your best friend when it comes to playing detective, afterall you found this page didn't you......
If you follow these rules you'll be fine, but if you let your greed take control then you can kiss your money goodbye........
*For UK citizens ask the firm for their Financial Services Authority (FSA) registration number and then do a 'Firm Check on the FSA's website - Click Here
|
July 2005
This is both hilarious and frightening at the same time.
We've been warning about the offshore broker scams for some time now (see this article) . Basically you get cold-called and offered the potential to profit from amazing short term returns (100%-500%). All you've got to do is to transfer money to the (scamming) brokers and wait for the investments to rocket in value.
Of course you'll never make the easy returns promised and your money will be long gone.
A New Financial Regulator is Born???
A major weakness of the offshore brokerage companies is that they aren't regulated (they couldn't get regulated even if they tried) so this puts more than a few potential clients off investing.
So in order to get round the problem some of the offshore brokers have just invented their own bogus financial regulator!
Yes, the Offshore Financial Futures & Commodities Organisation, O.F.F.C.O or OFFCO - website
So how do we know the OFFCO is nothing but a scam? Well look at these three glaring points;
- The address for the 'regulator' is 'Grand' Rue 92, C.P. 1526' (Switzerland) where CP stands for Carte Postale which translates to Post Box! In our opinion it's highly unlikely that a 'regulator' residing in Switzerland is going to be operating in this manner
- Perhaps more importantly a google search of 'Grand' Rue 92, C.P. 1526' comes up with this link at the number 1 spot Marijuana Seeds (Cannabis Seeds) Growing Marijuana, Legal Highs ... Mmmmm a financial regulator sharing an office with a pusher of pot seeds, what a joke (see the google snapshot here)
- We went to OFFCO's Registration Page then copy/pasted a random piece of text (into google). This is the text and it appears under the heading Interpretive Notice,
'The use of well-designed ethics training programs supports each Member's supervision of its employees and business activities. Like any other business process, remaining aware of changing industry standards'
So guess what google finds in the top spot? The exact same copy, word for word from this page http://www.nfa.futures.org/registration/ethics_training.asp which is the US regulated National Futures Association!
In fact if you do a Google search on the majority of the OFFCO website you'll find most of it is stolen from legitimate finance sites around the internet.
Summary
Watch out for the offshore brokers because they want to steal your money, and they're willing to use all sorts of tricks to achieve this goal. So to protect yourself here's a fail safe rule;
NEVER DEAL WITH ANY FINANCIAL FIRM THAT IS NOT REGULATED BY THE FINANCIAL SERVICES AUTHORITY (FSA)*
- Also, Check any firm that cold calls via the FSA's freephone helpline 0845 606 1234 (ask the firm in question for the company registered name AND their FSA number)
- In fact if you do get cold called then there's a 99% chance it's a scam
- This one is a GREAT TIP - Look at their website and call them back on their main switchboard number, if you always get an answerphone then you're about to be scammed
- Also ask the salesman who originally called you why the office switchboard is never answered by a proper person and have a good laugh at his/her excuse. You see once they've stolen your money they want to make it very hard for you to get hold of them, hence the number on the website is never answered by a real person!
- Note the client monies for an FSA registered firm will only be held in bank account in the UK. If you are asked to transfer money abroad there is a 99% chance they you'll NEVER see that money again
- Also, NEVER buy futures, options or any other complex financial instrument unless you fully understand them - If you don't know what you're buying you WILL lose your money
- Be very aware because the fake financial regulator trick is a good one, it will fool many people so be on your toes for other subtle scams
- Interesting Link - www.boiler-rooms.co.uk
PS. Follow this site using RSS - Free help & setup guide (takes 5 mins)
*Or similar financial regulator if you're based abroad, US = SEC, France = AMF, Germany = BaFin
|
