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California investor involved in elaborate scam on Metatrader 5 platform

Jun 15, 2022

The California Department of Financial Protection and Innovation (DFPI) has received a complaint from a California resident regarding online fraud involving cryptocurrency.

A California resident told DFPI he was approached by a woman on WhatsApp who convinced him they knew each other.  After a few weeks, she mentioned she could help him make money by trading, claiming she could get inside information from an Uncle in Hong Kong. She told the victim to wire funds to crypto.com and then send to brokers in Metatrader 5 (MT5). She also  relayed information to the victim via Whatsapp, telling him when to buy and sell. After a few weeks of making what he thought were successful and profitable trades, the scammer advised him to engage in another trade, This time, the app kicked him out and closed all his positions, causing him to lose a total of $1,240,500. These allegations have not been verified by DFPI.

This appears to be what is commonly called an “Advance Fee scheme,” which can take many forms, as discussed here:  https://www.fbi.gov/scams-and-safety/common-scams-and-crimes/advance-fee-schemes

The DFPI urges consumers to exercise extreme caution before responding to any solicitation offering investment or financial services.  To check whether an investment or financial service provider is licensed in California, consumers may contact the Department for questions or inquiries at ask.dfpi@dfpi.ca.gov or call toll-free at (866) 275-2677.  If a consumer believes a person or company has violated state law or acted improperly regarding a consumer financial product or service, they may file a formal complaint with the DFPI at https://dfpi.ca.gov/file-a-complaint/.

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Last updated: Jun 15, 2022 @ 3:19 pm