Four Fraudulent Platforms Blacklisted In Italy

Consob, an Italy financial market watchdog blacklisted additional four financial services websites. The four platforms were said to run their operations without the country’s jurisdictions. This blockage reduced the number of blacklisted platforms to 805.

The four mentioned platforms include Alltradingeu, Ethereal Group, MFCapitalFX, and FinanceCapitalFX Cyprus. This is according to the report released by the press on Friday.

The scrutiny of these platforms found that the four firms are not regulated by any regulatory body in Italy nor are they regulated by a body under European Union.

These four financial networks offer high-risk financial instruments. The services include contracts for difference instruments of different asset values, forex, and cryptocurrency CFDs to retail traders.

The research reveals that fraudulent platform targets to benefit more from helpless retail traders by offering them incentives and attractive leverages. Retail traders face a lot of challenges when it comes to withdrawing funds from their accounts. However, this is different from when a trader is opening an account or depositing some amount.

The Curbing Formula

With the current advanced technology, regulators have pronounced challenges in detecting these fraudulent as they shadow their websites under another web. However, the watchdogs have been very vibrant and keen on uprooting them from the service.

In addition, Consob has committed to exercising the powers given to them by Italian lawmakers to ensure the ban of access to these platforms within Italy. The watchdogs have agreed to use internet service providers to curb trading fraud.

“Consob draws investors’ attention to the importance of adopting the greatest diligence to make informed investment choices, adopting common sense behaviors, essential to safeguard their savings: these include, for websites that offer financial services, checking in advance that the operator with whom they are investing is authorized, and, for offers of financial products, that a prospectus has been published,” the official announcement added.


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