Before embarking on stock trading, it is essential to verify that the broker holds a valid license. Official records are accessible on the regulator’s website, and the regulator’s tool for verifying financial institutions can be used as well. If a broker is missing from the central registry or if their license has been revoked, they are operating illegally (attribution: Bank of Russia).
Investors in Russia may engage with foreign brokers, but this comes with substantial risk. It becomes much harder to spot fraudsters, and protection from the Central Bank of Russia no longer extends to activities with foreign institutions (attribution: Bank of Russia).
Foreign brokers may infringe on investor rights, including failing to follow timely instructions. If a dispute ends up in court, it will be handled under the laws of the country where the broker is registered (attribution: Bank of Russia).
Advice centers on caution when encountering online advertisements for foreign financial companies. Weigh the risks carefully. Three main deception methods used against Russians in the stock market are highlighted below (attribution: Bank of Russia).
Scheme 1 – training programs
Searching online for investment education reveals a wide range of courses and programs. Some offerings may mask scams promising rapid and guaranteed earnings, sometimes claiming returns as high as 100 percent per year. The danger is real, and losses can occur regardless of the advertised scenario (attribution: Bank of Russia).
In the first scam pattern, the fraudsters take an advance payment for lessons and vanish, leaving the investor without access to the program or refunds (attribution: Bank of Russia).
Another trap involves stealing payment details through a malicious training site, risking debit card information. Fraudsters may also lure investors into a brief period of education followed by a recommendation to trade on real accounts, offering impressive early wins in stock or forex markets. The reality is often staged, with inflated results during a demo phase that collapse once real funds are used (attribution: Bank of Russia).
When the investor attempts to withdraw, access is denied. The scheme ends with the loss of savings or borrowed funds, a common outcome in these controlled setups (attribution: Bank of Russia).
To avoid such traps, it is advised to seek education from licensed brokers or recognized exchanges such as the Moscow Stock Exchange. The key message remains clear: do not trust promises of guaranteed profits in the financial market and practice cyber hygiene by verifying training platforms and safeguarding personal and card data (attribution: Bank of Russia).
Scheme 2 – fake brokers
In this deception, fraudsters pose as reputable brokers. A manager from a supposed major firm invites the customer to review an important document or an attractive investment offer via a link in messaging apps. The link directs to a spoofed site that may differ by a single character from the legitimate source, designed to capture login details and debit funds (attribution: Bank of Russia).
Following the link results in unauthorized withdrawals once account information is entered. The safeguard is to scrutinize the website address carefully before proceeding (attribution: Bank of Russia).
Verified addresses of licensed companies can be found in the official Bank of Russia records. In addition, legitimate financial services portals display verification marks on search engines such as Yandex and Mail.ru, indicating licensed status (attribution: Bank of Russia).
Overall, exercise caution with unsolicited information from strangers and avoid clicking on suspicious links (attribution: Bank of Russia).
Scheme 3 – fake sellers
Entering the stock market typically requires signing a brokerage service agreement or a trust management contract. At this stage, investors may encounter fraudulent sellers who push for immediate deals with hidden commissions, confusing tax obligations, or onerous responsibilities that leave no chance of a refund (attribution: Bank of Russia).
Even when a reliable broker is involved, it is prudent to read contracts carefully and ensure every clause is transparent. If possible, seeking advice from a lawyer can help protect financial interests and avoid surprises (attribution: Bank of Russia).