The administrators of Samtrade FX today warned clients of the failed broker about persons that approach them, claiming that they can help them refund their investments.
The interim judicial managers from Messrs Rajah & Tann Singapore LLP said investors should not be lulled into false communications trying to usurp its identity to defraud them in a recovery scam, in which individuals are asked to pay a fee upfront before they receive any proceeds.
“The appropriate authorities have been contacted and further action is being taken in respect of any parties identified as sending fraudulent communications to clients of the Company,” they added.
The uptick in scammers activities comes shortly after Samtrade FX announced its court application for judicial management. The brokerage firm also published a FAQ on its website in order to provide clarity to concerned customers in regard to deposits, withdrawals, and overseas investors.
A common type of fraud
This type of activity is typical of the fraud mechanism known as a ‘recovery room.’ Although the regulators could help people who have lost money, they don’t charge a fee, guarantee money back, or give special preference to anyone who files a formal complaint.
While there are many variations of these tactics, the refunding scams are simply defrauding the victims one more time.
They use a variety of lies to add credibility to their pitch, and once the victim shows interest, a series of official-looking…
