Detect and Prevent a Fraud (Tips)

Questions and answers

  • Q. - You are requested an advance funding to start the process.

    A: The client should never make any advance payment to carry out the handling process. Be immediately suspicious of anyone who asks for an upfront capital.
  • Q. - Someone demands yours funds to be transferred to an account on behalf of a third party.

    A: The client's assets should NEVER be transferred or given to third parties. They will always remain deposited on the investor's account.
  • Q. - You are told that they work or have direct contact with a platform supported, supervised, approved, audited, affiliated with the FED (Federal Reserve).

    A: Do not trust this kind ofcomments. We would like to make a small comment regarding the issue of the "platforms". Please be careful and alert about this particular subject. This companies or platforms, as they call themselves, are nothing but a group of "x" people who decide to create a society and claim to have contact with a trader. The reality is quite different, since the vast majority of them have no connection with any real trader and what they do is to receive the assets themselves through a SWIFT MT-760 and then try to "settle" the operation as failed. This is a very common practice among the so-called platforms. It is extremely dangerous and can cause, in most cases, asset loss and/or numerous costs to the client. For this reason many programs are never opened or the investor loses his/her ASSETS.
  • Q. - Intermediaries who claim to have relationships and contacts with PROGRAM MANAGERS and suggest that you assets should be managed by this people.

    A: This is a fairly common practice in recent years. The investor, through a Corporate Resolution, appoints the broker as an authorized person to manage the client's assets and sign the Trading Agreement. This option is totally non-viable. An intermediary or broker can never be the person signing the Trading contract unless the broker is assigned indistinctly on the bank account where the resources are deposited (the client is unlikely to choose this option given the risk involved)
  • Q. - You are told that your operation can be placed in less than 5 days.

    A: As you can read in the Procedures section, there is a series of steps that must be met during the handling process and each of them has its proper timing: asset verification, customer düe diligence, signing of the Trading agreement, program preparation, etc. It is mathematically impossible for an investor to enter trading in just 5 days.
  • Q. - You are told that the Private Placement Program takes place on third world banks.

    A: A PPP is executed by a Trader with a related company and not by a bank. Traders rely on TOP 10 banks to obtain credit lines and to collect the investor's yields.
  • Q. - You are offered exorbitant returns for minimum quantities.

    A: This type of programs are based on buying and selling financial instruments, mainly MTNs (Medium Term Notes). The yields will depend on the amount of paper issued and the trader's available capital to make such purchases. The more capital is available, major purchases, major cuts and therefore a higher profitability will be obtained when such instrument's sales are made. The less capital, less purchases, and therefore less final profitability.
  • Q. - You are told that by renting an instrument you can access a PPP, and they will be responsible for the rental and the placement.

    A: This is the second cause of fraud. The approach is the following: For a very low price you can rent an instrument (usually a Bank Guarantee) in order to enter the program. The second part of the process (entering in program) is done verbally. These same gentlemen who are responsible for renting the instrument for the investor, will later place the client in program. The reality is quite different. It is not possible to enter a PPP just by being the recipient of the assets -and not their owner-. These gentlemen who were involved in the mediation for the rental of the instrument through a leasing company, will collect their comission and the investor won't be able to report such fact, because everything will be in good standing and the respective contractual arrangements for the rental of the instrument was previously signed by the investor. At last, the truth is that the investor turns out to be the recipient of an asset that cannot access the program, when that was its main goal, and therefore will suffer the consequent economic decline that implies the payment for the rent of the instrument. To place an asset as PPP, the client must appear both as APPLICANT as well as RECIPIENT. Also, the asset must be deposited on the client's account. The renting or leasing instruments usually show the financial company that rents as APPLICANT and the client as RECIPIENT.
  • Q. - You are told that they can do programs directly through a contact with the bank.

    A: Banks do not make programs directly with the Client. The client should perform the operation through an Authorized Trader.
  • Q. - You are offered access to a program without blocking the assets.

    A: The client's available resources must be blocked on the investor's account so that the trader can obtain the credit line needed to enter the program. A bank will never grant a credit line if this capital was not previously blocked in favor of the trader's corporation. So beware of anyone who tells you that you can enter the into program without blocking the asset / funds.
  • Q. - You are told that the asset's origin is not a relevant matter and that it can be placed without inconveniences.

    A: Error. All Assets (BG, CD, SKR, SBLC, etc.), through the issuing bank, should be confirmed as clear, clean and with a non-criminal origin. The confirmation or ratification documents should always be issued by banks headquartered within the European Community. We hope we were of big help with this little FAQ to detect and prevent possible fraud. However, if you have any questions or comments feel free to let us know through the Contact section.

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