BaFin Slaps Trading platform GS4trade Invest Limited

The German Federal Financial Supervisory Authority BaFin has issued a warning against a trading platform headquartered in Marshall Islands, GS4trade Invest Limited, due to its conducting banking business and providing financial services in the country without the required authorisation, pursuant to section 37 (4) of the German Banking Act.

The financial regulator noted that GS4trade Invest Limited is not subject to its supervision,  following callers’ claim that the indicated company was registered with the UK Financial Conduct Authority (FCA), which is not true. The callers pretended that GS4trade Invest Limited was connected to a company with a similar name that actually is supervised by the FCA. The callers then suggest that the investors carry out certain financial transfers. Following these transfers, the investors were to report a loss event to an insurance company. BaFin makes it expressly clear that this is not true. In fact, it is likely to be insurance fraud.

The German watchdog recommends that anyone seeking to invest money online should exercise the utmost caution and do the necessary research beforehand in order to avoid becoming the victim of fraud.