The NSSMC continues to monitor questionable financial projects (“scam projects” *) that promise citizens a quick and guaranteed income, and again reminds that investments in such projects often result in partial or complete loss of money.
According to information available in the Commission, two new scam projects l7.trade (https://l7.trade/) and FTC Future Technologies Company (https://ftc.vin/) have been activated. Usually the purpose of such projects is to raise a certain amount of money from trusted citizens and then disappear by closing the site. Then the project changes its name and opens a new website under a new brand. That is why the websites of such malicious projects are often very similar in structure, only the names and fictitious methods of profit are different.
The websites of the above mentioned projects l7.trade and FTC Future Technologies Company are no exception; the similarity of the content and structure of the sites is easily traced. On average, the life span of such projects is no more than 2-6 months (depends on the amount of money invested in site development and advertising).
The commission notes that scam projects have been increasingly distributing their content through YouTube channels. The above mentioned projects l7.trade and FTC Future Technologies Company are no exception, they are actively advertised by bloggers who are not related to investing in the financial markets but have a large audience. Such video content usually has a lot of "user" feedback about its allegedly successful investing experience, but such feedback is paid commentary by non-existing users (bots).
It is important to understand that earning income in scam projects is possible only by attracting funds from new participants, that is, the income of the former is generated by the following. Thus, no real trading and investment transactions are undertaken by such projects.
Due to the imperfection of the current legislation, the organizers and participants of such fraudulent projects usually avoid any responsibility in Ukraine. Public authorities have very limited capacity to prevent and counteract these manifestations, in particular, there is no regulation by the financial regulator. Law enforcement agencies in Ukraine have a low percentage of detection of such offenses. One of the reasons is that such companies are usually registered in other countries, and because of the lack of cooperation with the relevant financial and law enforcement agencies of these countries, we are unable to identify these persons and refund our money. Ukrainian financial laws, currency restrictions, and the absence of rules do not allow such entities to operate in Ukraine. Access to the real world financial markets for such projects is not possible due to the lack of transparent ownership structure, compliance with the established standards for the activity of financial companies, etc.
It is expected that legislative changes that will ensure the protection of consumers of financial services and the responsibility of companies in the market in accordance with European standards will be submitted to the Verkhovna Rada of the 9th convocation.
Once again, in order to protect citizens - consumers of financial services, the NSSMC has prepared recommendations "10 signs of fictitious investment project", which are published by reference.
* For scam projects, the Commission refers to quasi-Forex investments and projects that offer investment services but aim only at the illegal obtaining of investor funds.