Today, the Crypto VIP Club fraud marketing campaign is active on the BigOffersForYou (https://bigoffersforyou.com/vip-club) website attacking German-speaking consumers. Our early morning review discovered that the CySEC-regulated broker Phoenix Markets (www.phoenixmarkets.com) used the fraud campaign to chase new clients with non-compliant onboarding procedures. Phoenix Markets is an approved brand and domain of WGM Services Ltd regulated by CySEC under license number 203/13. Stay far away from Phoenix Markets and the Crypto VIP Club.
|Operating Entity:||WGM Services Ltd|
|Payment Processors:||BridgerPay, Sepaga EMI|
|Incidents:||deployed fraudulent Crypto VIP Club campaign|
deploys non-compliant onboarding procedures
enables unlimited initial deposits before properly confirming client ID
Unfortunately, it is not an exception that CySEC-regulated investment firms use fraudulent marketing campaigns to trap clients. In the illegal venture, regulated investment firms like Phoenix Markets also change their onboarding procedures and allow depositing large sums without prior KYC/AML verification. In our review of Phoenix Markets today, we could have deposited unlimited sums even before confirming our email. let alone our identity or address.
As a payment processor for credit and debit cards, Phoenix Markets integrated BridgerPay of Ran Cohen. A simulated deposit of €25,000 would have apparently gone through without any problems. A deposit via bank transfer to WGM Services Ltd’s bank account at Sepaga EMI would also have gone through with no apparent limit.
The use of fraudulent marketing campaigns by regulated brokers is a fraud on consumers and a violation of ESMA and CySEC regulatory requirements. We refer to these activities of regulated investment firms as illegal broker activities.