Warning on Frauds and Scams

Dear Client,

Protect yourself – be scam aware!

REMEMBER: If it is too good to be true, it probably is! When in doubt, apply the scam test:

S – seems too good to be true
C – contacted out of the blue
A – asked for personal details
M – money is requested

Anyone can be the target of financial fraud and scams. Your best defence is to stay informed, alert and secure. Below, you will find information on the most common financial services scams, as well as key advice and tips to help you avoid becoming the next victim!

Examples of Common Scams

The following are just some examples of common financial frauds. However, it is important to remember that perpetrators of fraud are constantly designing new ways to target their next victims...

Clone Firm Scams

Scammers may pretend to be from a legitimate firm to get you to transfer money to their account...

These scams often involve the fraudster using a reputable firm’s logo or letterhead...

Be wary of cold calls or emails you receive requesting money from you... If you are unsure whether a communication is legitimate, please contact IBKR Client Services.

Remember, if you invest your money with an unregulated firm, you will not be entitled to compensation schemes...

Identified IBKR Clones

Here are individuals operating as Clone Firms of IBKR the FCA has identified: https://www.fca.org.uk/news/warnings/interactive-brokers-clone-fca-authorised-firm

Watch out for Red Flags!

Here are some red flags you should watch out for if contacted by someone claiming to work for IBKR or otherwise be affiliated with IBKR:

IBKR does not cold call consumers to offer services or products or make investment recommendations.
IBKR does not directly interact with customers through social media channels.
IBKR does not charge you for assistance or guidance in completing an account application.
IBKR does not charge you a fee to withdraw your funds.
IBKR does not ask for remote access to your computer or mobile device.
IBKR does not ask you to action an internal or external transfer of stock or money over the phone.
IBKR does not ask you to share login details, particularly when this is done by creating a sense of urgency...

Check and Double Check!

If you are contacted by someone claiming to work for a regulated firm, remember:

Verify the details of the firm on its local regulator’s website. For IBKR affiliates in Europe, check:
- Financial Conduct Authority, in the United Kingdom: https://www.fca.org.uk
- Central Bank of Ireland, in Ireland: https://www.centralbank.ie
Beware that scammers may point you to the real firm’s genuine website but use different details to communicate with you...
You can contact IBKR to verify the information or report your concerns on this page: Client Services.
You can check what products and services we offer: interactivebrokers.co.uk or interactivebrokers.ie
If you do not hold an account with IBKR please report any concerns about fraud to the police in your home jurisdiction.

Pump-and-Dump or Ramp-and-Dump Schemes

In these schemes, scammers invest in a stock and then spread false or misleading information to create a buying frenzy...

Scammers often use new technologies to spread false or misleading information...

Interactive Brokers has published further information relating to the increasing trend of Ramp-and-Dump Scams in this disclosure.

Trash-and-Cash Schemes

These are the opposite of pump and dump schemes. In Trash-and-Cash schemes, scammers circulate false information...

Pension Liberation Scam

In most jurisdictions, pension benefits are only accessible once a minimum pension age has been reached...

Affinity Fraud

Scammers who carry out affinity scams frequently are (or pretend to be) members of the group they are trying to defraud...

Many affinity frauds are Ponzi or pyramid schemes...

To protect yourself against affinity fraud, always carry out your own research and due diligence...

Holy Grail Scams

Scammers are well aware of the attraction of a ‘holy grail’ trading system that will generate profits 24/7/365 with no risk or losses...

Interactive Brokers

Interactive Brokers Ireland Limited is regulated by the Central Bank of Ireland (CBI) and is a member of the Irish Investor Compensation Scheme (ICS).

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