Trading applications explode: watch out for scams that particularly aim for young people

The financial market control authority, the FSMA, sounds the alarm. Furthermore, In recent years, the number of applications for trading has exploded. Moreover, They are aimed at people who are already investing in other financial products but also those who would like. Furthermore, to get started. Moreover, Problem: last year, the FSMA detected around forty false applications. Nevertheless, More than 2,000 complaints were reported and 17 million euros were stolen from the victims.

“The fraudulent online trading platforms have a professional and neat appearance. In addition, They try to awaken the curiosity of potential victims by claiming to have a method allowing to get rich. Meanwhile, quickly“Explains the FSMA on its site. For example, “They offer simple investments (e.g. Therefore, currencies, action) but also alternative investments (gold, precious metals, etc.) and virtual currencies. However, Their offer adapts to trends and generally trading applications explode: watch out relates to the product that arouses the most interest in the media. In addition, “

An observation shared by the trainer on the stock market Grégory Guilmin: “OfThen the COVID. the first confinement in March 2020, we see a clear increase in the number of financial scams online. More and more people are swindled financially simply because they spend a lot of time on social networks. The crooks have more. more inventiveness and find ways of contacting people directly who unfortunately do not have knowledge about these subjects and who are fooled in sophisticated financial swindle schemes. “

Young people. privileged target – Trading applications explode: watch out

In recent years, the interest of young people has focused more and more on these ways of obtaining “easily” money. In a study on the activity of private investors. their standard portraits, the French financial market authority noted a generalized rejuvenation of the latter. According to trading applications explode: watch out the survey, those under 30 were the first group of “new investors”.

On Tiktok, Instagram or Youtube, dozens of influencers have smelled the market and create content on this subject. “How to become rich?”, “How to trade to earn thousands of euros in a few weeks?” It only takes some research to come across this kind of publication.

Many are legitimate. even relevant, but many are also those where the influencer in question is not benevolent: “There are certain influencers who pretend to invest, trader, and who cite an application for example. They are sometimes paid very expensive for these contents … but they don’t find out to know if the application is real. if it really works“, Analysis Grégory Guilmin.

For the specialist. the lack of education in economics and finance is the main problem: “Young people are much more exposed because they spend more time on social trading applications explode: watch out networks and also lack financial education. In any case. more than people who are 40 or 50 years old, who already have a bank advisor, a credit, perhaps already an investment. They know. in the majority of cases, that when we promise on social networks to become rich more or less quickly, it is probably a scam.”

A lack of prevention of the authorities

According to Grégory Guilmin. despite the warning of the FSMA, there is a lack of prevention, which allows the crooks to develop: “It is good that the FSMA alerts, of course. But I think it would also need work upstream. There is a manque of prevention on the part of the authorities. A lack of proactivity also because we see more. more that financial crooks are very ingenious in their techniques and are often ahead of the regulatory authorities. This is where the rub.“