CMA Standing Committee for Awareness Warn against Unauthorized Forex Activity

Standing Committee for Awareness of the Capital Market Authority (CMA) issued a warning against unauthorized Forex activity.

Beware of quick profit ads and unlicensed investment, it explained.

It warned, specifically, against trading in securities, in the Foreign Exchange Market (Forex), pointing to the innovative means pursued by unlicensed companies or fraudulent persons, to inflict their victims in unlicensed forex or digital currency activities, and to tempt quick profit and investment.

Fraudulent methods include publishing fabricated videos on social networking sites, that appear as news bulletins broadcasting official news by opening new investment channels, for citizens and residents, and inviting them to register their names and data, with the aim of deceiving them.

And then, transferring their money to them, as well as creating fake electronic platforms or impersonators telephone communication.

They tend to impersonate the capacity of government entities such as Public Investment Fund, Saudi Vision 2030 projects and well-known companies such as Electricity Company, National Water Company, Aramco and others, and deluding their victims of their belonging to these entities to gain their trust and lure them into profitable opportunities, through trading in foreign currencies.

Among the methods fraudsters also are create fake electronic platforms that impersonate names and trademarks and market them through accounts on social networking sites, and there are many fraud methods to include fraud by advertising for jobs, conducting personal interviews via phone or video call, luring victims to obtain their personal and banking information, and promoting fake investments through currency trading, and more.

The committee assured all citizens and residents that investing in the financial sector, in the Kingdom, is subject to specific legislation and regulations according to the competencies of the official authorities, and that those wishing to invest should verify the names of the licensed authorities, before making their investment decision by visiting the websites of government agencies related to investment, in the financial sector, that provide websites of the licensed entities.

Hence, those wishing to invest in securities should deal with them, as they are subject to supervision by the relevant regulatory authorities, in the Kingdom, and not to deal with unlicensed entities that are not subject to the supervision of the relevant regulatory authorities, in the Kingdom.