It is unfortunate and concerning to see the increasing number of messages we receive through this website from individuals who have been victims of fraud through fictitious overseas websites claiming to provide stock and currency trading services.
In many cases, the victim receives telephone calls from individuals claiming to represent the portfolio management department of a trading company. They encourage the individual to subscribe and promise substantial profits.
Unfortunately, many people are attracted by these promises and transfer money to bank accounts which, in many cases, may be personal accounts located within the Kingdom of Saudi Arabia.
In some cases, the individual also provides the caller representing the fictitious trading company with personal information and account details before making sufficient inquiries or verifying the legitimacy of the company.
The fraudulent scheme may then continue by misleading the client into believing that profits have been generated and that additional amounts must be paid, such as taxes or similar charges, before the funds can be released or transferred to the client’s account.
In some cases, a person claiming to be a lawyer may also become involved in order to pressure the client and persuade them to transfer further amounts.
This raises an important question:
Since when do legitimate trading companies deal with their investors in such a personal manner, or ask clients to transfer funds to personal bank accounts rather than to an account registered in the name of the company?
Due to the number of cases we receive concerning this issue, I strongly warn against dealing with such communications and fictitious websites.
Anyone who has dealt with such parties or transferred money to them should immediately submit a complaint to the relevant police department and report the fraud, providing the authorities with the details of the bank accounts to which the funds were transferred.
At the same time, a complaint should be submitted through the Saudi Arabian Monetary Authority portal against the fictitious company concerned.
If funds have been withdrawn from the person’s bank account through criminal hacking, as has occurred in some cases reported to us, a complaint should also be submitted to the bank and to the Saudi Arabian Monetary Authority.
Legal Consultant
Mohammed Osama Radi, Attorney at Law
