Saudi Arabia warns against illegal FOREX dealings

Saudi committee stated that the suspicious entities are adopting numerous, diverse and innovative ways and methods to trap their victims

  
Image for illustrative purposes. An investor monitors a screen displaying stock information at the Saudi Stock Exchange (Tadawul) in Riyadh, Saudi Arabia January 18, 2016.

Image for illustrative purposes. An investor monitors a screen displaying stock information at the Saudi Stock Exchange (Tadawul) in Riyadh, Saudi Arabia January 18, 2016.

REUTERS/Faisal Al Nasser

RIYADH — The Standing Committee for Awareness on dealing with unauthorized securities activities in the Foreign Exchange Market (FOREX) warned against new methods and practices used by unauthorized companies and persons to promote their illegal businesses.

In a press statement, the committee said that the methods that it monitored during the past include using logos of government agencies and some private bodies; and publishing incorrect statements related to government officials and public figures in the form of advertisements aimed at misleading citizens and expatriates, to make them believe in the legitimacy of the financial dealings of these suspicious entities.

The committee stated that the suspicious entities are adopting numerous, diverse and innovative ways and methods to trap their victims — both among citizens and expatriates.

It identified the most prominent of these practices as that of these parties creating misleading press reports and headlines that include pictures of government officials with an appeal to register in some government services with using logos of newspapers and commercial electronic sites.

They circulate their ads through these fake reports, so that they appear reliable to the public, though they are in fact promotional advertisements that use the logos of these newspapers and websites in an illegal manner to promote their suspicious activities.

When the reader clicks on the report, which is in the form of an online advertisement, a new page appears requesting the person, who wishes to invest his money, to furnish his contact details with the promise of quick financial gains, prior to using the process of fraudulent means against citizens and expatriates.

Those who use these misleading ads also use fake stories that appear on well-known websites in the Kingdom, taking advantage of the large number of visitors of these sites and post responses to their stories to make them believe in the legitimacy of their business.

They also use social media platforms for paid promotion or by promoting through personalities who have high rate of popularity in various means of social media, which indicates to the public that this activity has some sort of legitimacy.

The committee called on the public to verify from well-informed sources and those holding necessary licenses before making any investments, and avoid being lured into temptations of earning quick gains as claimed by the unlicensed FOREX companies.

It also noted that the relevant government agencies in the financial and investment sector provide data and information on their websites about the licensed agencies for those who are interested in making investments as these agencies are subject to supervision by the relevant regulatory authorities in the Kingdom.

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© The Saudi Gazette 2020

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