Fraudulent trading firms exploit Lebanese investors amid rising losses

Report by Theresia Rahme, English Adaptation by Karine Keuchkerian

Money never comes easily, a lesson underscored by a growing number of cases involving fraudulent trading companies.

Many Lebanese citizens looking to increase their savings or earn extra income receive advertisements or phone calls from trading companies. The companies claim to be international, licensed firms and say investors can make money from home simply by investing with them.

The investors see that the companies have websites, employees, and everything appears legitimate. With the promise of easy money, there seems to be little reason to say no.

Then suddenly, the companies disappear, and so does the money. Many citizens have fallen into this trap.

In one case, the amount lost reached $300,000, and a complaint has been officially documented by the Lebanese Internal Security Forces.

In Lebanon, an official list published on the Capital Markets Authority's website shows which companies are genuinely licensed.

Official figures show there are 13 brokerage firms, 11 financial companies, and 40 banks licensed to conduct activities related to financial markets, according to Lebanon's central bank.

If a company says it is licensed in Lebanon, investors should look for its name on that list.

If it claims to be licensed in another country, investors should not rely solely on its name or website. They should visit the website of that country's regulatory authority and verify whether the company actually exists, what type of license it holds, and whether it is authorized to provide trading services to clients in Lebanon.

If its name cannot be found, or if it is unclear which authority licensed it, that should be considered a major red flag.