The Central Bank of Russia today posted data about its work for preventing fraudulent activities in the financial services sector in 2021.

In 2021, the central bank identified nearly 2,700 illegal financial services companies and pyramids. The number of finance pyramids reached 871 (compared with 222 in 2020), whereas the number of illegal participants in the securities market was 860 (their number in 2020 was 395).

The rise in the number of such illegal entities is blamed on the active expansion of fraudulent business online. At the same time, the regulator has enhanced its monitoring process. Thus, the central bank identifies illegal business more easily.

More than half of the pyramids lured investments in cryptocurrencies or offered their victims to invest in non-existing cryptos. The fraudsters abuse the poor financial literacy of their victims.

The majority of the illegal participants in the securities market offered Forex dealer services. There were 812 illegal Forex dealers (the official designation of OTC Forex brokers in Russia) detected by the central bank in 2021. Many of them claimed to be foreign brokerages.

Let’s note that last year the central bank initiated the blocking or restricting of access to more than 3,000 websites of illegal financial companies.

The central bank recommends to the public to be careful when considering financial offers, especially ones concerning investments. The regulator publishes the so-called “warning list” which includes companies with characteristics of fraudulent activities.

The list features companies such as illegal creditors and financial pyramids, as well as online trading firms that do not have the necessary licenses but nevertheless target Russian investors. There are hundreds of illegal brokerages in the list, including Forex firms.

One of the names mentioned in the list is Alpari Limited. Grand Capital is also enlisted. Foreign FX firms that have gotten into trouble abroad, such as USGFX, are also present in the blacklist.