The Permanent Committee for Awareness and Warning against the Activity of Trading in Securities in the Unlicensed Foreign Exchange "Forex" urged citizens and resident expatriates to exercise caution and be aware of the practices of some individuals and entities that promote unlicensed Forex activities and unlicensed digital currencies, which involve high risks and exploitation of citizens' savings, as well as making them vulnerable to fraud.
In a recent press release, the committee warned against social media accounts and websites that target Saudis and expatriate workers using photographs of well-known figures to deceive consumers and persuade them to participate in fraudulent investment schemes.
The statement urged the people to double-check and verify the legitimacy of the websites by accessing the official websites of government entities and determining whether or not the websites are properly licensed.
The committee noted that misleading advertisements posted on websites and social media accounts take advantage of the enormous number of visits made to these sites and comments left on their stories so as to deceive the reader into believing they are legitimate. Social media platforms are also used, either through paid promotion or by promoting through celebrities having a large social media presence, giving the public the impression that this action is legitimate and lawful.
The committee urges everyone not to respond to these deceptive advertisements and not to deal with these unlicensed actors, regardless of their methods, and to report such activity to the police so that appropriate action can be taken.
The permanent committee, which was formed by a Royal Order, aims to increase awareness and warn about the unauthorized trading of securities in the foreign exchange market "Forex," as well as the marketing of unlicensed digital currencies regardless of their names and derivatives.
The committee is chaired by the Capital Market Authority (CMA) and its members include the Ministry of Interior, the Ministry of Media, the Ministry of Commerce and the Saudi Central Bank. It works in close collaboration with the relevant government agencies to curb the practice of marketing investment and trading in unlicensed Forex activities and unlicensed digital currencies.
Saudi monitoring authorities keep a close eye on suspicious practices, arrest violators and address such activities in line with the Saudi laws.