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A Closer Look into the CashFx Fraud

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Illustration of a man with a hoodie in front of a laptop to depict the topic of Cashfx fraud

When it comes to investing, it’s important to stick to best practices and stay vigilant regarding the different options and offers you may encounter. Everyone wants to have a lucrative investment, but when something sounds too good to be true – it might as well be. This is the case with the CashFx Group which turned out to be a complete forex fraud – leading to regulatory warnings across several countries including the UK, Canada, Norway, Panama, and more.

What is CashFx?

The Cash Forex Group (CashFx) is an organisation that offers its investors a large sum of profit from their highly claimed automated trading systems and multi-level schemes.

Some of their claims include the chance to make up to 15% weekly from trading alone, with potentially higher yields if you opted for their referral programs and other multi-level offerings.

Now, who wouldn’t want to net those numbers? It can be easy to be tempted by those claims, especially by a group that was supposedly founded by a team of experts and educators. However, as we prefaced above some things are just too good to be true.

The CashFx scam

We’ve compiled a series of indicators that are suspicious signs of fraud and credibility red flags from the CashFx Group.

  1. The unmanaged and outdated CashFx website with promos from last year’s events still showing as stay tuned.
  2. CEO Huascar Lopez refers to himself as an industry leader in network marketing with no project or links to point at as former roles before CashFx.
  3. The statement “Cash FX Group says that it offers its members the chance to make money from currency trading that is performed automatically by a program that uses artificial intelligence.” is false of any regulated business.
  4. Warnings by UK FCA on CashFx being an unauthorised firm selling financial products.
  5. The way their offerings and products work:
    • All customers buy a certain “package” ranging from USD $300 to USD $100k.
    • Your payment is divided into a 30/70% ratio with the 30% invested in a training package that teaches customers how to trade forex while the other 70% is added to a trading pool controlled by an AI to initiate the trades.
    • To get your returns (200% or more based on your package), you’ll need to onboard other customers that’ll buy a certain package.
    • There is no evidence of actual forex trading ongoing on the platform and it highly suggests a Pyramid scheme.
  6. AML Policy – as expected, there is no AML policy or statement (except for a phrase KYC in T&C).
  7. Their introductory video is a discussion mostly based on an MLM scheme with little to no mention of the actual forex trading itself, or how the training package (academy) works – which is a central component of their offering.

Closing remarks

To conclude, the CashFx Group is a matrix/pyramid scheme that clouds uninformed people with a false knowledge of product sales through forex training and AI-controlled trading.

The company’s board and business registrations are promoted under false registration in Panama and many other countries with AutoCAD-generated images as business office spaces to house the touted 250 employees of the company.

Pictures of their Packages and Levels, detailing reward programs based on progress in onboarding other people to form a matrix (shown below) are designed to entice those who are unaware of their activities.

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In the face of all these claims, it’s easy to fall into a false sense of security especially when you don’t have an idea what to look for. Therefore, in this type of scenario having a bit of knowledge and a vigilant mindset can save you from potential financial losses in the future.

With that said, we hope this article has been insightful and raise awareness of the potential forex schemes that exist out there. It’s likely this CashFx fraud isn’t the last or the only one out there, so make sure to do your research before committing to any investments.

Further reading: Click here to explore related security topics on our learn site.

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