The Manitoba Securities Commission (MSC) has issued a warning about two firms based in Cyprus, UFX.com and Reliantco Investments Ltd., which it says are soliciting investors in Canada using social media platforms, such as Facebook.
These firms are not registered, the MSC says in the warning, and are violating provincial securities laws.
At least one investor in Manitoba responded to an ad on Facebook, and “lost a significant sum of money” using a credit card to pay for the trades, the warning says.
“It is unlikely that this investor will be able to get his money back. In addition, he may be subject to the higher interest rates charged by his credit card company,” the MSC warning says, adding that using a credit card to fund trading “may pose additional risks to investors.”