The National Commission has updated the list of SKAM projects: there are now 462 on the list
26 February 13:56
The National Securities and Stock Market Commission (NSSMC) has updated its list of potentially fraudulent investment projects, according to "Komersant Ukrainian".
Two more initiatives with signs of increased risk have been added to the list: Bits Global and Daxia Limited.
In total, there are now 462 projects on the list for which the regulator has identified signs of possible fraud or violations of the law.
Where to check for SCAM projects
The full list is available on the NSSMC’s official website in the “Investor Protection” section. The regulator urges citizens to carefully check investment offers before investing.
What is a SCAM project
A SCAM is a project or company that does not fulfill its obligations to investors and may cease operations after raising funds.
In the investment sphere, such projects are often disguised as:
- crypto platforms;
- trading companies;
- foreign financial organizations;
- innovative startups with “guaranteed income.”
How to protect your funds: 10 signs of fraudulent investment projects
To avoid becoming a victim of financial fraudsters, it is worth checking the reliability of a project before investing.
These signs will help you identify potentially fraudulent projects:
1. High percentage of guaranteed returns.
Some projects offer returns of 100% or more per annum, while the algorithm for using the money and the logic of earning are extremely vague.
2. Lack of appropriate permits and licenses.
As a rule, the project does not have any official regulatory permits and licenses to carry out activities related to the provision of financial services, asset management, or other services in the capital markets of the country where it raises money. Sometimes investors are provided with “licenses” from dubious foreign organizations or exotic countries.
3. Aggressive marketing.
Most potentially fraudulent projects require aggressive advertising support. As a rule, advertising campaigns are carried out on the Internet. Large-scale, bright, promising, it is usually based exclusively on emotional motives, rather than rational arguments. Don’t be fooled by a bunch of positive reviews on the company’s website, recommendations from famous bloggers and media personalities, or even a network of related “partner” sites in other jurisdictions.
4. No physical office.
The presence of exclusively online communication, the absence of a physical office in the city or country where the project offers services, the absence of identified employees with professional history who are responsible for managing investors’ funds — all this should make you take a closer look at the investment project.
5. No registration in the country where investments are being attracted.
Contact legal entities and beneficiaries are usually residents of countries such as the Seychelles, UAE, British Virgin Islands, Saint Vincent and the Grenadines, Republic of Vanuatu, countries with offshore zones, preferential customs or registration conditions.
6. No investor accreditation.
The projects are not interested in the investor’s financial capabilities or resources and are willing to work even with low-income clients, offering them loans on oppressive terms. Also, as a rule, there is no verification of the investor’s financial condition or credit history.
7. Suspicious or unverified biographies of managers.
Closed information about the actual project managers, those responsible for legal, financial, and accounting support of the project. Vague and legally unclear job titles of nominal managers appearing in advertising materials. Lack of confirmed professional history of such persons. Public figures who may be presented as managers of such projects may in fact be hired actors and not involved in the management process in any way.
8. Absence of signed documents.
Under Ukrainian law, the conclusion of financial agreements requires the personalization of signatories, personal signatures on documents, the physical presence of documents signed by both parties to the agreement in several copies, or signed using an electronic digital signature.
9. Insistent offers to involve friends.
The proposal to investors to involve friends, relatives, and acquaintances in investments is a common practice of dubious investment projects.
10. Concealment of ownership rights.
Absence of any documents that could confirm a person’s ownership of assets or their share in which investments are theoretically to be made. Absence of systematic reports on transactions, activities, and results of investor asset management.
How to report fraud?
If you are aware of any suspicious activity in the financial market, you can report it to the National Securities and Stock Market Commission at [email protected].
Why is the list constantly updated?
The number of online investment platforms is growing rapidly. Some of them operate without a license or are not legally registered in Ukraine at all.
The NSSMC regularly monitors the market, responds to citizens’ appeals, and adds new projects with signs of fraud to the list.
How to protect yourself
Experts advise:
- Check the company in the NSSMC registers.
- Do not trust “guaranteed” profits.
- Do not transfer funds to unknown foreign accounts.
- Avoid unlicensed platforms.
- Do not transfer personal and banking data to third-party websites.
Updating the list of SCAM projects is a tool for protecting investors. However, the final responsibility for investment decisions remains with citizens.
Before investing, it is worth carefully checking each platform and not succumbing to attractive but dubious promises.
