Financial Fraud on the Rise in Kazakhstan: Citizens Warned
Kazakhstan’s financial market has seen a significant increase in cases of illegal activities, with unlicensed individuals attempting to dupe citizens into investing in fraudulent schemes. The Kazakhstan Stock Exchange (KASE) has issued a warning to the public to be vigilant and not fall prey to these scammers.
Fraudulent Activities on the Rise
Fraudsters are using pseudo-access to trade on Kazakhstan’s financial market, claiming to offer high investment income and consulting services. They often pose as KASE employees or licensed brokerage organizations, but in reality, they are operating illegally.
Warning Signs
To avoid falling victim to these scams, citizens should watch out for the following warning signs:
- Unlicensed individuals or companies offering investment opportunities
- Promises of unusually high returns or guaranteed profits
- Pressure to make a quick decision without doing thorough research
- Lack of transparency about the company’s operations and management
How to Avoid Falling Victim
To avoid falling victim to these scams, citizens are advised to:
- Check the broker’s license before investing. Licensed brokers work on the basis of a license from the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market (AR DFM) and subject to an agreement on brokerage services.
- Evaluate the reliability of brokers based on other parameters, such as their rating, financial performance, and shareholders. The AR DFM website provides general information about brokers, including shareholders, management, contacts, and applied enforcement measures and sanctions.
Risks Associated with Investing
It is important to note that investing in the stock market carries risks, and investors may incur losses. Therefore, brokers cannot guarantee high investment income or the absence of investment losses.
Reporting Fraudulent Activities
If you suspect any type of financial fraud, contact the AR DFM’s consumer rights hotline at +7 (727) 237 10 00. The list of organizations with signs of unlicensed activities can be found on the government website.
KASE recommends that individuals affected by fraudulent actions report them to law enforcement agencies to compensate for damages and bring the perpetrators to justice.