La Consob, the supervisory body of the Italian financial market, intervenes again to protect savers by ordering thesix new websites blacked out that they offered abusive financial services. The sites blocked by Consob are: “Expo Trust”, “Royal Dimex Ltd”, “Real PremiumEU”, “Real PremiumEU Markets” “Investousit” “Lyxmont” and “Alfatrade” with their related pages.
With these new interventions, the total of sites blocked by Consob rises to 1.110, starting from July 2019, when the Authority obtained the power to block websites of these abusive financial intermediaries.
The Authority used the powers of the growth decree law, which allow Consob to order Internet connectivity service providers to block access from Italy to websites offering financial services without authorisation.
The Consob provisions are available on his site. The supervisory body recommends savers to be diligent in investment choices, verifying that the operators are authorized and that the information prospectus for the offers of financial products has been published. On the Consob website in section “Watch out for scams!” present on the homepage, you will find useful information for defend yourself from financial scams.
What is financial abuse
The financial abuse it is an activity carried out by people or companies offering financial services or products without the necessary authorizations. Simply put, it's about subjects operating illegally in the financial market, causing risks and damage to consumers.
La provision of investment services and the offer of financial products are activities reserved for authorized operators, who must be constantly supervised and registered in specific public registers. Operating without the necessary permits is illegal, regardless of whether scams occur or not, similar to driving without a license.
The types of financial abuse
there different types of financial abusiveness, including:
- Illegal provision of services and investment activities: Carrying out reserved activities without the authorizations issued by the competent authorities.
- Illegal performance of the activity of financial promoter: Professional exercise of off-site offers by a person not registered in the Register of Financial Promoters.
- Illegal offer of financial products and advertising activity: Offer of financial products without the publication and filing with Consob of an information prospectus, where required by law.
Practices have become increasingly frequent with the spread of the internet, which has multiplied the possibilities of contact and advertising of illicit investments.
The consequences of financial abuse can be serious for consumers, who may suffer economic losses, scams, embezzlement or damage to their image.
How to recognize an abusive person
There are several methods to identify a financial abuser. Consob provides useful information on its site to spot these scammers. Here are the main signs to watch out for:
Difficulty in identifying the reference company
A serious and reliable company communicates clearly by which Authority it was authorized. It is essential to know the exact name of the company proposing the investment to verify its presence in the registers of entities authorized by Consob or other authorities. Often, information on the real name of the company can be found on the homepage of the site, in the "about us" or "contacts" page, or in the contractual documentation.
Registered office in tax havens or exotic places
You always need to verify the nationality of the company. No non-EU company is authorized to provide investment services in Italy. Even if the company is based in a European Union country, you need to verify that it is authorized to operate in Italy.
Promise of very high returns
We always see investment proposals taken with a grain of salt they promise very high returns compared to those on the market. High returns correspond to high risks or possible scam attempts. Often, these platforms promise quick profits, failing to mention the risks of losing the entire invested capital.
Investment incentive techniques
Illegal companies use bonuses or incentives to attract new customers, making people believe that they can start earning quickly. However, losses can occur quickly, and recovery attempts can lead to further losses.
Suspicious contact methods
Illegal operators often use unexpected phone calls, email, banner or pop-up to contact potential customers. These contact methods are insidious and require special care and caution.
Difficulty in returning the sums invested
When they emerge difficulty in repaying the sums, it is likely that the company has no intention or ability to meet divestment requests. At the first signs, it is advisable to immediately try to exit the investment and recover the money.
The most frequent cases
Le forex trading activities and binary options are the most frequent in relation to the abusive provision of investment services. The Forex concerns the foreign exchange market, characterized by high volatility and leverage, which can amplify both gains and losses. The binary options, similar to betting, are equally risky and can lead to the loss of your entire investment.
With the advent ofequity crowdfunding, regulated by Consob, have also emerged abusive crowdfunding platforms. It is essential to verify that the portal manager is authorized by Consob to avoid scams.
How to protect yourself from abusive practices
When abusive financial activity is suspected, this is critical promptly report it to Consob. Citizens' reports are crucial to protect public savings, given the growing danger of illegal financial activity, which can also lead to prison sentences of up to 4 years.
Consob can report the facts to the judicial authorities, suspend or ban the abusive offer and block the website involved. In the event of a crime, it is advisable to report the incident to the judicial authority, which has more incisive precautionary powers. It is also possible contact the civil judge to request compensation for damages suffered.
When financial illegality it also constitutes a crime, such as the abusive provision of investment or financial promotion services, it is important to report the incident to the judicial authorities. This is also possible in case of scam. Legal actions can be complex, as abusive companies are often based abroad, making it difficult to identify those responsible.
At the first signs of problems, it is It is advisable to exit the investment immediately and stop further payments. Collect all relevant documentation to the investment is essential to support any legal actions. Block your credit card if you have communicated the data to the abusive company it is essential to prevent unauthorized charges.
Finally, it is important to collect all available documentation, including contracts, emails and payments made, to prepare reports to Consob, report to the judicial authorities and take compensation actions.
About other information from Consob with useful links to obtain information from reliable sources, including at a European level.
