Market Effects is operating a follow-on-fraud. Mr Mark Edward (it will not be his real name) is writing to investors in trading scams, e.g binary option trading or commodities trading, claiming to have recovered all of their investment plus 80% of their “profit” from the scam they invested in. Please note that there is never any “profit” in any of the trading scams. Investors who logged into their trading account ALWAYS saw healthy profits, but the truth is that none of those trades ever took place. Investors were viewing a fake trading account generated by software manufactured by a company which specialised in supplying the software to scammers.
The emails sent by Market Effects are actually not very good. They use an email program which allows them to merge several lists from different trading scams and insert the relevant information into their emails. We have copied one of their emails below with the inserts described in brackets [……..].
Mark Edward <firstname.lastname@example.org>
Subject: TRANSFER OF YOUR LOST INVESTMENT
To: [INVESTOR EMAIL]
Hello [INVESTOR NAME]
We have tried reaching you multiple times but to no avail. Brokers Community in connection with Global Investigating Expert would like to inform you that we have finally completed investigating against [NAME OF SCAM]. The company in which you lost your investment sometimes back.
We can proudly say that your investment is now ready for withdrawal back to your Bank account today. Please be informed that as of date 15.06.2014, our rates of recovery have been drastically increased from 40% to 99% and we have received a lot of praise for our amazing work.
The financial conduct authority has given the approval of your funds to be withdrawn today. Therefore, you have the opportunity to withdraw your funds back immediately. You will be withdrawing 100% of the down payment you made to [NAME OF SCAM] plus 80% of the estimated profit you made during the investment period. Confirm your telephone number [INVESTOR PHONE NUMBER] to receive a call for your login details and a suitable time to help you withdraw your money.
Call this number now for help: 44 203 807 8218—
Specialist | VIP and Corporate Department
+44 203 807 8218 | email@example.com
Brokers Community and Global Investigating Experts are fake and Market Effects is a follow-on-fraud. It sounds impressive that Market Effects recovery rates have increased from 40% in 2014 to 99% in 2019, but it is just a lie. The domain name, www.marketeffects.co was registered in February 2019. It was purchased solely for the purpose of carrying out this scam.
What does this tell us ? We have known for a long time that many of the binary option trading scams can be linked back to a small group of people in the UK. We have been gathering evidence against them. The fact that the emails from Market Effects have a space where the name of the scam is automatically inserted [NAME OF SCAM] along with the other inserts of [INVESTOR EMAIL], [INVESTOR NAME] etc suggests that the fake company, Market Effects, has more than one list of scam victims. If it only had one list it would write the name of the scam in the email and would not need a piece of software to insert the name of the scam. This tells us that they have links to the main scam group.
All in all it’s quite a poor quality follow-on-fraud. If you have been contacted by these people you should report it to your local law enforcement agency.
This is only the latest in a stream of follow-on-frauds which are coming out with increasing frequency. You can read about more of them on our blog page.