The U.K.’s Financial Conduct Authority (FCA), has released a statement on March 28, 2018, warning investors about an unregistered brokerage firm. Olsson Capital, a Bulgarian firm, has been providing financial services in the UK without the authorization of the FCA.
Catching a Scam in Headlights
The Agency commented:
“This firm is not authorized by us and is targeting people in the U.K. Based upon information we hold, we believe it is carrying on regulated activities which require authorization.”
The rogue firm offers cryptocurrency-related derivatives, their website advertises with the statement “CFD and Cryptocurrency trading easy, powerful and profitable.”
The services they offer include trading on a variety of cryptocurrencies, including bitcoin, Ripple, Dash, ether, Monero, and Litecoin. The firm demands a minimum of $250 deposit to open an account.
Scam Broker, a website that probes the legitimacy of hundreds of Forex, Option, Crypto and Commodity brokers, have investigated the firm.
Comments by users on the page reveal a host of dissatisfactions, with many from several investors claiming that requests for withdrawals have not been processed several days after submission.
One user, writing under the pseudonym of vodafone mobile stated:
“This company is a bunch of liars and thieves, i’ve been informed that this company is a scam! all i want is my deposit back,,, i didn’t invest much, they are only interested if you deposit money then they will contact you, i haven’t heard anything from them for the past week. i’ve already reported them to the fca and they are now investigating it. Apparently they have had other complaints about this company as well. Every time you make a deposit Olsson capital take an extra $14 dollars out of your bank account. I’m fuming, disgrace to society. i hope karma will get them back for stealing money.”
The company also feature on Trustpilot, where they have achieved a 2.9/10 customer satisfaction rating.
The FCA issued a consumer warning last November 2017 about the speculative nature of buying into a cryptocurrency’s Contracts for Differences (CFDs) and the extremely high risks involved.
As CFDs are typically offered with leverage, you need only to put down a portion of the investment’s total value. That being said, leverage also places a multiplier on the changes in price on both profits and losses, meaning that inexperienced investors can lose money very quickly.
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