The latest fraud news: 12th September

Chris Lee

Welcome to this round-up of the latest foreign exchange and cryptocurrencies fraud news on 12th September.

CFTC makes more charges against allegedly fraudulent traders

A major US regulator has been busy making charges against allegedly fraudulent traders this week.

The Commodity Futures and Trading Commission (CFTC), which monitors the futures and swaps markets in the country, has now charged a man from Canada with fraudulent solicitation of forex traders – plus a host of other accusations, including making misleading statements.

Simon Jousef, who operated an organisation called FuturesFX, has been accused of finding people to participate in his trading system featuring support services, training videos and more.

He also claimed that the trading room, as he called it, was live – but the trades he was supposed to be making and selling access to as an information product were, allegedly, simulated.

He is also accused of telling his customers that he was an experienced trader who had license to operate as a commodity trading adviser by the CFTC – but, in reality, he did not.

In a common hallmark of foreign exchange scams, he allegedly created advertising materials which failed to adequately convey the level of risk involved in the transactions.

He is accused of creating materials which contained phrases such as “A Guaranteed Winning Formula”.

The timeframe of his alleged crimes spends from around July 2014 until early January 2016.

In a statement, the CFTC gave more details about the amounts involved – which run into the millions.

“The defendants allegedly charged members up to approximately $9,000 to receive this access to the trading system”, it said.

“The CFTC’s complaint alleges that, as a result of the fraudulent solicitation scheme, the defendants received approximately $1.3 million in subscription fees from more than 300 members located in the United States and other countries.”

“In addition, the complaint alleges that Jousef knowingly made false or misleading statements regarding material facts to the NFA when he submitted annual CTA registration updates concerning FuturesFX’s predecessor company”, it added.

Blockchain-powered anti-fraud tool picks up more clients

A blockchain-powered tool designed to help brands avoid falling victim to fraud has picked up another major US client.

SKUxchange, which provides software for retailers and brands designed to facilitate fraud-free special offers and promotions, will now work alongside Jack Link’s.

SKUxchange’s technology is patent-pending and uses blockchain databases to monitor how promotional offers are performing – and ensuring they are free from fraud.

Jack Link’s is a meat snacks brand.

In a statement, Tom “TD” Dixon – who is the chief marketing officer for Jack Link’s – highlighted the need for brands to avoid fraud in an increasingly digital world.

“SKUxchange understands what brands today are facing in an ever-evolving and complex digital world”, he said.

“As marketers, metrics matter and ROI is critical now more than ever before. I’m excited to be working with SKUxchange and to see the impact this technology can deliver long-term for Jack Link’s.”


Chris Lee

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