French Financial Watchdog Warns Public Against Shady Investment Platform

The Autorite des Marches Financiers (AMF), the French financial watchdog, has issued a public advisory against Immediate Connect, an automated investment platform that is being promoted on social media in an attempt to lure unsuspecting investors.

Revealing Promotional Techniques

In its official statement, the AMF disclosed that the promoters of Immediate Connect are luring investors to the platform through various techniques. They claim that investors will receive millions of euros in returns with no risks. They use impersonation tactics by advertising to potential investors with fake news articles and the likeness of famous television presenters in order to gain the trust of unsuspecting clients.

Once they have attracted the attention of investors, fund managers urge interested clients to invest in digital currencies or the foreign exchange market. These scammers use fake trading reports to convince victims that their initial investments have yielded positive returns. However, withdrawal attempts are met with requests to pay capital gains taxes and other fees, effectively swindling victims of their funds.

Adding to the Blacklist

After investigating the activities of Immediate Connect, the AMF has blacklisted the firm as a fraudulent investment platform, warning investors to be cautious when considering such opportunities. The regulator also emphasized that only authorized companies in the European Union are permitted to offer brokerage services in forex or crypto-asset derivatives.

Caution for Investors

The advisory from the AMF reminds investors to be cautious when approached by investment firms promising high returns with no risks. They’re urged to confirm the firm’s status before investing. Additionally, the AMF cautions investors about the volatile nature of the forex market, where significant price swings can lead to rapid capital loss.

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The AMF’s Continued Efforts

This is not the first time the AMF has taken action against illegal investment platforms. In Q3 of 2023, the AMF, in partnership with the Prudential Control and Resolution Authority (ACPR), blacklisted 22 fraudulent investment websites, bringing the total number of flagged websites to over 60. The AMF has also introduced a “Responsible Influence Certificate” and implemented strict penalties for individuals convicted of running illegal investment platforms.

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