Dmitry Evteev, expert of the Central Federal District of the Bank of Russia, noted that before starting to trade on the stock exchange, you need to check whether the chosen broker has a license. Relevant records are available on the regulator’s website. You can also use the “Check financial organization” option here. If a broker is not in the Central Bank registry or his license is revoked, he is working illegally.
Evteev said Russian investors can interact with foreign brokers, but this is very risky. First of all, in this case it is much more difficult for the investor to detect fraudsters. Secondly, an investor interacting with a foreign financial institution will no longer be under the protection of the Central Bank of Russia.
“A foreign broker may violate investor rights. For example, not following instructions on time. If a person decides to go to court, he will have to defend his interests in the country and in accordance with the laws of the country in which the selected company is registered,” said Evteev.
He advised that if you come across an advertisement of a foreign financial company on the Internet, you should think twice and weigh all the risks. The expert also listed three main ways to deceive Russians in the stock market.
Scheme 1 – training programs
If you type “investment education” online you will find many different courses, training and educational programs. It is possible that behind them are scammers who are ready to offer “fast and effective training, thanks to which the investor will start earning up to 100% per year.” Here scenarios can develop in various ways and in any case the investor loses money.
Evteev said that in the first case, fraudsters will take the advance payment for lessons and disappear.
Fraudsters can also steal money from the investor’s debit card if the investor provides full details on the website.
Another scenario, according to the expert, suggests that scammers can teach the client to invest in the stock market or forex market for a while. Scammers give the investor time to master the basics, play in demo mode, where everything is going well on the exchange and the invested amounts double every day. Scammers then persuade the customer to invest all their savings or even use loan money. For a while, the person shows extraordinary results, and the projects or securities he chooses quickly bring profits.
However, the problem is that when the investor wants to withdraw this money, he will not be able to do so. The reasons for such a “failure” can be any, but the result is the same – the investor will never see his money again.
To avoid getting into such a situation, the Bank of Russia expert recommends training only in proven areas. For example, from a licensed broker or the Moscow Stock Exchange.
“Under no circumstances should you believe loud promises about guaranteed earnings after training. No one can give guarantees in the financial market. Also, do not forget about the rules of cyber hygiene: you need to check the training grounds, carefully study all the conditions and carefully transfer your personal data and card information,” said Evteev.
Scheme 2 – fake brokers
In this deception scenario, fraudsters disguise themselves as well-known brokers.
A manager representing a supposedly large company offers to send a link to some important information in the client’s messenger – an agreement on the provision of brokerage services or a mega-profitable investment offer for new clients. The link leads to a fake domain and may only be one letter different from a real source.
Once the customer follows the link to the fake resource and enters the details, money is debited from his account. To prevent this from happening, you need to carefully study the address when going to a particular site.
“The correct address of licensed companies can be found in the relevant records on the Bank of Russia website. In addition, official resources of all licensed professional securities market participants in Yandex and Mail.ru search engines are marked with a check mark in a blue circle,” explained Evteev.
The expert explained that it is better to approach other information with caution, you should not follow suspicious links from strangers.
Scheme 3 – fake sellers
To become an investor and start trading on the stock exchange, you need to sign a brokerage service agreement or a trust management agreement.
At this stage, the investor runs the risk of encountering fake sellers who offer to immediately conclude a deal, which may include hidden “brutal” commissions, “difficult” tax calculations or an impressive list of what the investor must do. is financially responsible, so a refund is absolutely not guaranteed.
“Even if a reliable broker is available, the contract needs to be read carefully. You need to make sure all points are open. If you have the opportunity to consult a lawyer, it is better to do so to protect yourself,” Evteev concluded.