In this article you will learn in detail what financial fraud is.
Learn about the main types of scams and how to avoid them.
In recent years, financial scams have increased due to the possibilities offered by new technologies and social networks .
Start of marked textSHARE! Practical tips to prevent financial fraud and avoid falling for the most common scams.End of marked text
SMEs and self-employed workers democratic republic of the congo email list
are easier victims of financial fraudsters , since they do not have the resources that large companies have to prevent these types of financial fraud.
The CNMV has published a guide that can help SMEs and self-employed workers prevent this type of scam, as it provides useful information to prevent financial fraud and protect investors.
Financial scams can cause huge financial losses that can ruin victims who fall into their trap. Therefore, it is better to be careful and learn to identify financial scams.
What is financial fraud?
Financial fraud is the illegal activity of manipulating certain financial information in order to obtain illegal profits, causing economic harm to a third party. This type of fraud can occur in any aspect of the financial world, such as banking, investments and insurance.
Fraudsters use a variety of techniques to commit financial fraud, such as falsifying documents, manipulating financial information or stealing identities. These techniques often target vulnerable individuals or businesses without sufficient financial security , as is often the case with many SMEs and self-employed individuals.
If you are promised huge profits, used foolproof investment methods or offered impossible solutions to financial problems, it is very likely that you are facing an attempt at financial fraud.
What are financial chiringuitos?
The so-called "financial chiringuitos" are entities that offer and provide investment services without being authorized to do so. These types of entities are usually scammers who use, in most cases, the same commercial channels that any legitimate entity can use: telephone, email, websites, social networks, etc., although their way of acting is very different.
To avoid falling into the hands of a financial scam, it is important for individuals and businesses to take preventive measures . Such as verifying the identity of the company offering financial services and its background, before making investments or major financial transactions . It is also important to be alert to signs of potential fraud, such as offers that seem too good to be true or requests for personal information.
Types of financial fraud and how to avoid them
The information guide prepared by the CNMV highlights the following financial scams:
Impersonation of authorized entities
This occurs when unauthorized companies use identifying data from companies authorized and registered with the CNMV, in order to confuse investors by giving an appearance of legality . These financial scams illegally use, even on their websites, identifying elements identical or very similar to those of duly authorized and registered companies or their same URLs, with minimal and almost imperceptible changes.
Before purchasing a financial product, you should check the details of the company offering it and reject unexpected or unsolicited offers until you verify that they come from entities duly registered with the CNMV.
Funded trading account service linked to training courses
There are certain websites that offer a service that is generically called funded trading accounts. These services offer the possibility of accessing a securities account to carry out operations such as buying and selling shares, CFDs, Forex, etc. The peculiarity is that the user would not risk his own capital, apparently operating with what the website itself would provide him and, in exchange, he would supposedly obtain a percentage of the profits obtained.
In order to be able to use these funded trading accounts, the user must take a course in which, among other subjects, the trading rules to be followed are explained and he must pass operational tests in a simulated environment and within certain operating parameters (maximum daily loss, risk level, etc.). This course requires the payment of a prior amount, sometimes several thousand euros, in order to attend. In many cases, these courses are fraudulent. Victims lose the money paid to take the course and never gain access to the funded trading account.
